Investment Focus & Thesis

MSouth Equity Partners invests primarily in the South with a consistent focus on management buyouts of business services, specialty distribution, and healthcare companies. Their approach emphasizes partnership with management and value creation: Investment Range Equity investments typically ranging from $5 million to $30 million in lower middle market companies across the Southeast. Sector Focus Business services, specialty distribution, healthcare services, and select industrial investments. Business services — Recurring revenue services with strong customer relationships Specialty distribution — Niche distribution companies with technical expertise Healthcare services — Healthcare delivery and support services Industrial services — Specialized industrial services and manufacturing

Notable Portfolio Companies

MSouth Equity Partners has built an impressive portfolio across their target verticals, with particular strength in business services and tradeshow services: Company Sector Notes Fern Exposition Services Business Services One of the largest tradeshow services contractors in North America Nth Degree Business Services Comprehensive tradeshow management and event production Metro Plumbing, Heating & Air Home Services HVAC and plumbing services in the Southeast Ashworth Heating & Cooling Home Services HVAC services company in the Southeast Prime Gas Partners Energy Services Natural gas distribution and services Security Solutions Business Services Security services provider MSouth's strategy of combining add-on acquisitions with organic growth has created several scaled platforms, including their tradeshow services business which combines Fern and Nth Degree.

What MSouth Looks For

Based on their publicly stated criteria and investment patterns, MSouth Equity Partners evaluates opportunities based on: Defensible market position — Companies with strong competitive positions in their respective markets Stable competitive dynamics — Industries with predictable competitive environments High free cash flow conversion — Businesses that generate strong cash flows relative to EBITDA Strong EBITDA growth prospects — Clear pathways to earnings growth through the investment period Multiple expansion opportunities — Potential for add-on acquisitions to build scale }> Pro Tip MSouth is known for their hands-on approach and ability to source deals through their extensive Southern network. If you're based in the Southeast and looking for a partner who understands regional business dynamics, MSouth should be on your shortlist.

How to Connect With MSouth Equity

Approaching MSouth Equity Partners requires demonstrating your company's regional strength: 1 Demonstrate Regional Presence Showcase your strong position in the Southeast. MSouth focuses on Southern companies and values regional expertise. 2 Highlight Cash Flow Quality MSouth values high free cash flow conversion. Be prepared to demonstrate your cash generation capabilities. 3 Show Acquisition Potential Present a clear thesis for add-on acquisitions. MSouth has a strong track record of building platforms through M&A. 4 Leverage Regional Advisors MSouth has deep relationships with Southern banks, accountants, and attorneys. Leveraging these connections can help get introductions.

The Value of Financial Preparedness

PE firms like MSouth expect detailed financial information. Being prepared with professional financials demonstrates maturity: Financial Metrics • Detailed cash flow analysis • Working capital requirements • EBITDA adjustments and quality • Capital expenditure needs Operational Data • Customer concentration • Vendor relationships • Competitive positioning • Management team depth }> How Eagle Rock Helps We help companies prepare for PE investment by building detailed financial models, cash flow analysis, and operational dashboards. Our fractional CFO services ensure your company is ready for due diligence from firms like MSouth.

Frequently Asked Questions