Invest in Proven Private Businesses

If you have built a profitable, stable business and you’re starting to think about what comes next but you’re not ready to completely walk away, you’re not alone. Many business owners reach a point where they want to slow down a bit and take some money off the table but also make sure they protect their team and set up the company for long-term success. Or they know their business hasn’t reached its full potential, and needs strategic support to scale. 

That is where PE Gate comes in. We invest in strong, cash-flowing businesses and partner with owners to unlock value while keeping what makes the company great.

So how do you know if your business might be ready?

Here are five clear signals:

1. Your business is profitable but needs help to scale

We look for companies generating $2–15 million in revenue and $500K–$4 million in EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization). These are mature businesses with stable margins and scalable operations, not early-stage startups or high-burn ventures. At PE Gate, we look for a track record that proves your business model works and there's genuine room to scale - but you need support in achieving your company’s full potential. 

When PE Gate partnered with Kingston Refractory Services in 2019, the industrial services company was already a trusted provider of refractory installation and maintenance across Canada with a strong reputation in quality and safety. The fundamentals were strong, however, the company needed support to grow. 

With PE Gate's involvement, KRS doubled revenue within the first year, expanded operations into British Columbia, purchased a dedicated property, increased credit facilities, and professionalized the team with an Operations Director and additional key staff. By Year 3, this profitable business turned into a professionally run company that can scale and the Founder’s shares in the business have become significantly more profitable.   

2. Your customers keep coming back with minimal investment in marketing 

Customer stickiness is one of the clearest signs of a strong business. When customers return month after month or year after year, it creates predictable revenue, reduces customer acquisition costs, and gives you a stable foundation to build on. But you’ve done this through hard work, with minimal investment in marketing. 

We invest in businesses with built-in reasons for customers to return: pet owners who trust their groomer, manufacturers who rely on the same maintenance partner, or clients who come back every tax season. That loyalty compounds over time and makes your business more valuable. It also creates the perfect foundation for building a marketing and growth strategy—an area where PE Gate brings deep expertise.

Paws in the Bath, a network of premium pet grooming salons, joined the PE Gate portfolio in 2023. With a loyal customer base built over 15 years in the Greater Toronto Area, the business was well positioned to grow. Within a year, Paws rebranded, expanded through acquisition, adding All Dogged Up Grooming & Pet Spa to its platform and rolled out new brand and marketing initiatives that elevated awareness across the GTA.

3. You've built a loyal team (and want to protect them)

When founders want to step back, continuity matters. Businesses with a capable management team in place, or employees who can grow into leadership roles, are ideal for partnership. However, we understand that you may not have built your business for succession, yet you have some key loyal team members that you want to protect who should benefit from the next phase of your business. 

As Ara Sahakian, Founder and Managing Partner at PE Gate, recently shared at an industry event, "Succession takes planning. We are flexible and work with owners on timing and structure. We help promote within or hire the right talent to take the company to its full potential. We strongly encourage employee ownership and our online platform allows for liquidity for investors and staff alike.”  

At PE Gate, we often help owners put stronger governance structures in place, bring key employees into ownership, and establish reporting systems that make succession easier. When we partnered with Dewson Architects, the founder remained actively involved while the firm's key team members co-invested, becoming part of the ownership team to handle growth in sustainable design projects. The result was a smooth transition and continued momentum.

4. Your operations are scalable without a major rebuild

We look for companies with efficient, repeatable systems that can grow without a complete overhaul. You do not need cutting-edge technology to be ready. What matters is that your operations are solid enough that scaling up will not break the business. However, basic investment in technology can greatly support scaling of the business. 

Jean Desgagné, an investor and former TMX executive who has worked with PE Gate since its early days, describes the approach this way: "PE Gate looks at small businesses where there's a compelling business story and they can fix what’s in the way of the current managers.”

In many partnerships, we help owners strengthen finance and reporting systems, add project management tools, or improve marketing and governance. Kingston Refractory Services added an Operations Director and expanded across provinces without disrupting its core processes. The goal is to professionalize without overcomplicating.

5. You operate in a market with steady demand—and room to grow through acquisition

Great businesses solve ongoing needs, not short-term fads. We focus on sectors where demand holds steady regardless of economic cycles, trends, or what season it is.

As Jean puts it, "These are real, solid businesses that employ people and create products that people want and will pay for."

From industrial services and architecture to pet care and professional firms, our portfolio reflects that approach. PE Gate portfolio company Active Scale Manufacturing serves essential industries with long-term clients, while our CPA roll-up initiative targets accounting firms with stable client relationships. These are businesses that weather economic shifts because they provide services people and companies always need.

What partnership looks like

PE Gate is not a traditional fund. We invest deal by deal and tailor each partnership to the founder’s goals. That can mean a minority investment that allows the founder to keep control and de-risk, or a majority partnership that supports a full transition.

As Bill Dewson, Founder of Dewson Architects, shared, “They’re hands-on in the right ways. PE Gate brings governance, discipline, and the confidence to scale while letting operators stay in the driver’s seat.”

We help founders preserve the legacy they have built, not replace it. In many partnerships, we facilitate opportunities for key team members to take an ownership stake in the company. This creates long-term alignment and ensures those driving the business forward share directly in its success.

Sarmen Boyajian, General Partner at PE Gate, adds, “We bring in operators to run each company and step in with CFO, board-level, and marketing support. We help teams strengthen financial visibility, brand presence, and growth strategy. We handle finance and governance so operators can focus on running the business.”

We bring governance, growth expertise, and financial discipline, but we never strip away the culture or independence that made the business successful in the first place.

Ready to explore what is next?

If your business fits these five signals, it may be time to start a conversation. We are actively looking for our next great partner and helping owners take their next step with confidence.

Ready to partner with PE Gate? Schedule time with us here.