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The Future Is Digital
Digital transformation barriers-to-entry are dropping
Demands from upstream vendors and customers to digitize are increasing
Labor rate increases will continue to meaningfully impact operating margins
Innovative companies look to code and automation as an additional form of operating leverage
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The Challenge Is Human
Talent acquisition obstacles stand in the way of successful digitalization initiatives within lower middle market companies
Successful digital transformation depends on attracting and retaining the right talent, transforming company culture and developing institutional knowledge
The human challenge is difficult enough for software companies; basic businesses face additional uphill battles
Alignment of interest is the key to success
Lower Middle Market Investing Meets the Digital Transformation Age
Investment Criteria
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Control equity investments (>50% equity ownership) in support of:
Buyouts
Recapitalizations
Founder / owner succession solutions
Growth initiatives
Meaningful seller retained equity required for alignment of interests
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Business services
Industrial services
Manufacturing
Value added distribution
Specialty rental
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Established lower middle market companies
$2.0 to $10.0 million EBITDA
B2B products and services
Track record of growth, demonstrated ability to generate free cash flow
High service quality
Differentiated product offerings
Forward-thinking management team
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United States
Kobus is a trenchless technology company which provides municipalities, gas companies, utility contractors, and other infrastructure stakeholders a safe and innovative solution for replacing water and gas service pipes
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Alejandro Capetillo
Partner
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Brett Baucum
Partner
November 20, 2023
Agile Growth Equity Completes Acquisition of Kobus
Agile Growth Equity is pleased to announce that it has partnered with the management team of Kobus Services Limited and Kobus, Inc. (together, “Kobus” or the “Company”) to complete the acquisition of the Company. Based in Houston, Texas, with operations in Tamworth, England, Kobus (www.kobus-inc.com) is a trenchless technology company which provides municipalities, water and gas companies, utility contractors, and other infrastructure stakeholders a safe and innovative solution for replacing water and gas service pipes.