A funded buyer with a clear mandate.
You've seen buyers who waste your time: vague criteria, slow responses, LOIs that fall over in diligence. Here is exactly what we're looking for, how we work, and what you can expect from us on every mandate you send.
Mandate at a glance.
Thresholds are guidelines. If a business is exceptional and sits just outside these, send it anyway and tell us why.
| Criterion | Specification |
|---|---|
| Sector | B2B services (field services, compliance-driven inspection and certification, mission-critical embedded services) or vertical software |
| EBITDA | $1M–$5M, with demonstrated profitability over three or more fiscal years |
| Revenue | $3M–$20M |
| Recurring revenue | Strong preference for contracted, subscription, or repeat revenue above 50% |
| Customer concentration | No single customer above 20% of revenue; top five below 50%; diverse end markets preferred |
| Employees | Typically 10–75 people |
| Operating history | 10+ years; established brand, processes, and customer relationships |
| Geography | Ontario as the anchor; active sourcing in BC and Alberta; selective in Quebec and the US Northeast based on sector fit |
| Seller situation | Founder or owner seeking retirement, transition, or partial liquidity; open to full sale, majority recap, or phased handover |
| Structures we'll consider | Share or asset purchase; seller notes; earn-outs; rollover equity; phased transitions |
| Not a fit | Turnarounds, real estate, consumer-facing businesses, highly cyclical sectors, businesses that don't survive the founder leaving |
How we work with intermediaries.
We know which buyers get shown deals first: the ones who respond, follow through, and don't retrade.
Fast, honest feedback
Every teaser gets a reply. If it's not a fit, we tell you quickly and tell you why, so you can move on. If it is, we'll be specific about what we'd need to see to move to an offer.
A buyer who has done diligence for a living
Taylor spent years at Bain & Company running due diligence for institutional private equity buyers. He knows what a clean process looks like, what slows one down, and which questions actually matter.
Disciplined LOIs, not fishing expeditions
We issue an LOI when we mean it, after our investor group has seen the opportunity. That means fewer surprises after exclusivity, and a buyer who has already done the work to know the price is real.
A committed diligence budget
After an LOI, we engage an independent quality-of-earnings accountant and Canadian M&A counsel, plus commercial or technical advisors where the business calls for it. We tackle the make-or-break questions first, so a deal that won't close is stopped early rather than late.
Institutional backing, owner-operator conduct
Dovetail is backed by experienced search fund investors and operators. Acquisition financing typically combines investor equity with senior debt from Canadian lenders. There is no investment committee retrading terms at the last minute; there is one decision-maker, and you'll be dealing with him directly.
We respect your process
Your client's timeline, your NDA, your data room, your rules. We will not go around you to the owner, and we will not use your process to inform another bid.
What to send.
A one-page teaser is enough for a first read: sector, location, revenue and EBITDA for the last three years, the owner's situation and objectives, and any customer concentration. If it fits, we'll sign your NDA and request the CIM.
We are also glad to have a short introductory call without a specific mandate, so you know our criteria, our timing, and who you're dealing with before the right business comes across your desk.
Send a teaser, or just introduce yourself.
Attach nothing here; just tell us the sector, size, and situation and we'll reply with an NDA or a straight answer. Direct email works equally well.
Thank you. Your note is on its way.
Taylor reads every introduction personally and will reply within a few business days. If you don't hear back, email Taylor.Miller@dovetailgp.ca directly.