DB Capital was established in 2016 by Pam and Brett Bontrager. After long careers as entrepreneurs and corporate executives, parents of 4 and grandparents of 3, the couple decided to launch a capital investment company focused on acquiring and developing small businesses in the service sector. Armed with an "Employee First" philosophy, the Bontragers are intensely focused on businesses where the discretionary effort of the team will create a differentiated and sustainable service solution for our customers.
DB Capital is attracted to businesses that promote and sustain a strong employee culture. Specifically, our experience shows that when management has a "servant attitude" and combines that with very clear and concise business strategies and goals, phenomenal accomplishment can be made. We are not advocating a soft environment, but rather one where definitive goals and strategies are agreed to. Employees are thereby set up for success and a maniacal focus on accountability and deliverables are part of the DNA of the business.
We are looking for businesses that offer products and services in a sector which has long-term sustainability and a premium is earned for best in class service. We are attracted to businesses where key imperatives for success can be measured daily and there is a level of transparency regarding performance with the customer to sell differentiation.
Companies we partner with display a history of predictable cash flow and a recurring revenue component. A rigorous planning process is implemented to identify a winning, profitable growth strategy. Our portfolio companies display reasonable relevant market share and have identifiable organic growth opportunities in sector and geographically. It is also critical that the sector presents inorganic growth opportunities.
DB is focused on acquiring small businesses and driving growth which facilitates margin expansion expectations and firm value multiple expansion.
-Our "employee first" philosophy combined with a disciplined operational excellence drives organic growth and operating margin expansion. It is an expectation of ours that we will drive 5% to 10% in operating margin improvement with our companies. Cost synergies relied on by corporate America do not work with small businesses. Consequently, we focus on investments, pricing, and prioritizing elimination of bureaucracy.
- We perform an efficient diligence process. We are cash buyers who can move quickly, but are very disciplined with EBITDA multiples. We acquire in sectors were there are organic and inorganic growth opportunities so we can gain scale quickly. This scale drives the EBITDA multiple expansion upon any divestitures.
A disciplined return profile is the cornerstone to our vision. Throughtout our collective careers this philosophy has proven to be dependable.