Get the Free Guide
In this episode of the Sell or Scale podcast, John Bartlett from Brentwood Growth interviews Ariez Dustoor of NB Group, a private equity firm specializing in first institutional investments in founder or family-owned businesses. Ariez shares valuable insights into what makes businesses attractive to PE firms, ideal deal structures, and how owners should prepare for a sale. Learn what happens during the due diligence process, what changes after acquisition, and how to maximize your business value. Perfect for business owners considering selling or scaling their company with a private equity partnership.
Ariez Dustoor runs NB Group, a private equity firm focused on being the first institutional investor in founder or family-owned businesses across the U.S. and Canada. They specialize in multi-location service businesses, including residential and commercial services like roofing, siding, and specialized facility services.
When evaluating potential acquisitions, Ariez looks for businesses with recurring revenue streams, consistent growth history, solid management teams, and limited customer concentration. Ideal targets have a mix of installation and maintenance revenue, with a preference for higher maintenance percentages.
NB Group typically seeks majority ownership, though it’s done minority deals, and prefers that original owners retain significant equity stakes to maintain alignment. In a typical $10M deal, an owner rolling over 25% equity might expect to see that stake grow to exceed its initial cash-out amount in about five years.
For owners considering a sale, Ariez advises clarifying their future role, ensuring personality and vision alignment with potential buyers, and preparing their business by addressing red flags like weak management teams or customer concentration.
After an acquisition, NB Group avoids radical changes and gradually implements improvements, particularly in financial reporting and management team development. This often frees owners to focus on strategic growth initiatives they previously lacked the bandwidth to pursue.
