Learn About Drups Ventures
Currently Drups Ventures utilizes the investment vehicle of Search Funds in order to acquire, merge, and manage new businesses. Search Funds provide investors with a lucrative investment opportunity with returns at 36.7% IRR according to a Stanford 2017 Primer on Search Funds. They offer high returns while reducing risk as compared to investment options like start-ups since investors are purchasing stock in an existing privately-held business.
Search Parameters
Entrepreneurs use a search fund vehicle to seek out investors to purchase an existing business. The Drups Ventures targets businesses generating approximately $1M EBITDA, at a 3-4 times multiple of earnings in the categories of Marketing Businesses, Niche Manufacturing, and Ecommerce.
Combining these great prices with financing options offer exceptional return possibilities for investors. Reach out to our Drups Ventures team to get more details on investment opportunities clicking here.
The CEO
CEO – Joseph Drups
Joseph Drups is the general partner for Drups Ventures. He is an entrepreneur with 9 years of proven management experience. This includes 4 years of experience in operations and management working as an officer in the United States Air Force, and 5 years of experience founding, growing, buying, and merging businesses in the private sector. Joseph has managed the operations of 1000’s of personnel in the USAF as well as purchased, managed, and merged four businesses.
Joseph’s private market experience began by launching and growing his own digital marketing and management firm which he founded in 2014. Undg Ventures has grown from $0 revenue in Dec 2014 to a projected $1M in 2019. Undg Ventures offered Joseph a broad range of experience in purchasing and merging small business operations, management, ecommerce, digital marketing, product development, and engineering. He is currently seeking investors to participate in his next business acquisition.
To learn more about Joseph Drups, click here or connect with him on LinkedIn.
Search Fund Process
A typical search fund begins with raising funds from investors. After that comes the search and acquisition phase which generally takes 6-12 months after the search fund is fully capitalized. Drups Ventures utilizes a proprietary search process to connect to up to 1000 possible candidate businesses. During the search, the Drups Ventures team identifies, assesses, and analyzes viable businesses for purchase.
Candidate businesses will go through a strict vetting process to remove businesses with a risk of failure, and look for businesses with potential for rapid growth.
After vetting up to 1000 candidate businesses, the Drups Ventures team down-selects to the top interested candidate businesses. Next comes the period of negotiating terms, issuing LOIs, and accomplishing due diligence with the final list of candidate businesses. After a target business deal is finalized, Drups Ventures lines up financing to purchase the business. Options for financing depend on the terms of the deal. Options include owner financing, an SBA loan, bank/crowdfunded term loans, and a potential Series B level capital raise.
After taking over the business, the Drups Ventures team manages the business as well as hires or assigns the executive roles for the business. Our team then develops business strategies to optimize business performance, create value, improve sales and maximize returns.
To learn more about the Drups Ventures please reach out to us via our website contact form: Click Here to Connect.