Dexa Capital is a recently-founded private investment firm that seeks to invest in or acquire small, privately-held businesses in North America.
We particularly like boring-but-steady businesses. While most investors seek to find the next game-changing company or technology, they tend to neglect the businesses that solve meaningful problems or satisfy enduring necessities. We, as consumers, often don’t give much thought to these less-than-sexy businesses that do mundane, often repetitive, tasks. Many have been in business for decades. They don’t have explosive growth but tend to be consistently profitable. These are the types of businesses we like. To us, boring is beautiful.
We are not a private equity firm. We don’t look to “optimize” a company, load it with debt and then flip it within a few years for a quick profit. Quite the opposite. We recognize that these businesses were profitable before we came to the scene and that we don't have all the answers; we want them to be managed with a long-term focus. Our target holding period is indefinite.
Our target audience is comprised of the following:
1) Primarily and most important: the owners of the businesses and companies we seek to acquire.
2) Much less important but still relevant: the small-business brokers, lawyers and bankers that advise them.
Everything, our brand, logo, image and message should be directed squarely at the first group, which is inherently diverse. However, they tend to share some general attributes:
- They are usually mature adults (> 50 years old).
- They are owner/operators, meaning they manage the day-to-day operations of their company.
- They have usually been in the same business for many years; they are often the second or third generation in such business.
- They are emotionally, not just financially, attached to and invested in their business and their employees.
There is an infinite number of reasons why a small-business owner may wish to sell part or the totality of their company but the most frequent ones are retirement with no successor (when their kids do not wish to continue the family business) or when they need capital to grow.
Values to communicate
We want to differentiate ourselves from the mainstream financial sector in general and from private equity funds in particular. We are a group of entrepreneurs and owner/operators ourselves and are convinced that there are great opportunities out there in places where few are willing to look. We are patient, intellectually humble and willing to put in the work.
We want our brand to transmit:
We want to be seen by potential sellers as a trusted acquirer.
We want to avoid anything that makes us look predatory, aggressive, arrogant or high-minded. We also wish to avoid any overtones of luxury or exclusivity.
About the name
We wanted a name that was short, simple and easy to pronounce in most languages. It is completely abstract but it reminds us of the prefix “deca-”, meaning "a factor of ten". The “x” also makes us think of multiplication, which is what we want to do: leverage the knowledge and experience of everyone involved.
Although the acronym DEXA is used in the medical world, it should still be abstract to most people.