FAQ
Frequently asked questions.
Short, direct answers to the questions founders, brokers, and capital partners ask us most.
Do you provide consulting or fractional CFO services?
No. 2-Squared Advisory is the operating sponsor of 2-Squared Holdings, a permanent-capital platform that owns and operates essential-service businesses. We do not sell consulting, fractional CFO, or advisory services to the public. Operational support is applied only to companies we own.
What industries do you invest in?
Essential-service verticals with code-mandated or recurring demand: fire & life safety, surface infrastructure (pavement preservation), executive risk and secure logistics, interior and exterior finishes, and industrial dry-ice cleaning. We do not invest in SaaS, technology startups, or venture-stage companies.
How does the permanent-capital structure work?
2-Squared Holdings is a permanent-capital holding company — not a fund. There is no fund clock, no forced exit timeline. We hold acquired businesses indefinitely, reinvest cash flow into tuck-ins and adjacencies, and compound value over decades rather than 5–7 years.
What size businesses do you acquire?
Typically $1M–$10M of EBITDA for individual acquisitions, with platform companies in the $3M–$10M range. We buy at 3–6× adjusted EBITDA and structure most transactions with a mix of cash, seller note, and rollover equity so the founder is aligned through the transition.
Do sellers get liquidity, or is it all equity rollover?
Sellers get real cash liquidity at close. Rollover equity is available (typically 10–25% of the pro-forma cap table) but not required. The principal contributes his own operating companies into the vehicle and commits alongside sellers, which is why alignment matters.
What is the EOS + AI operating system?
A repeatable operating playbook we install in the first 100 days of every acquisition: monthly close discipline, EOS cadence (L10, rocks, scorecard), 13-week cash flow forecasting, and AI-enabled dashboards that let a holding-company team monitor multiple businesses without drowning in reports. It is infrastructure inside owned companies, not a service we sell.
Do you take minority stakes or provide loans?
We typically buy majority or full control and operate the business. We do not underwrite third-party loans or take passive minority positions outside our own vehicle.
How is 2-Squared different from a traditional private-equity fund?
No fund clock, no external LPs demanding exits, no carried-interest incentive to churn portfolio companies. The principal is invested alongside sellers with his own operating companies contributed into the vehicle. We compensate ourselves through long-term ownership, not carry.
What is a founder-friendly succession sale?
A transaction structured for a founder who wants liquidity and a transition — not a fire sale. Cash at close, an optional seller note, optional rollover equity, and a defined handoff period. The founder chooses whether to stay involved as an operator, a board member, or exit day one.
Where are you based, and where do you invest?
The principal is based in Dallas-Fort Worth. We invest across the United States wherever we can build route density in one of our verticals. Texas and the broader Southeast get an outsized share of our attention because that's where the seed portfolio sits.
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