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After spending two years as a searcher and seven years successfully operating Microdea — a document management and workflow automation software company he acquired in 2014 and sold to Transflo, a global technology leader in transportation, in 2020 — Steve Divitkos knows first-hand how challenging the ETA journey can be.
In 2022, he launched Mineola Search Partners to help entrepreneurs navigate the tactical, commercial, and personal challenges inherent to ETA. Almost four years later, he has just announced the first close of Fund II, which will continue to invest in SFs and the SMEs they acquire across North America.
Headquartered in Toronto, Canada, Mineola’s first fund has backed more than 25 searchers over the past four years and participated in approximately 15 acquisitions. Its portfolio includes Robertson Rent-All, Three Rivers Therapy, Reliable Premium Management, Honolulu Ship Supply Company, CMC, Desert Services, TelcoBridges, HCP Modular, Big Box Storage, and Raisin, among others. The firm typically invested between $500k and $750k per deal, participating in both traditional and self-funded search transactions. Steve is also open to joining a board when invited by a searcher. Fund II will follow the same strategy, targeting companies operating in the North American lower-middle market.
Steve Divitkos, Mineola’s Founder, commented: “At a macro level, small businesses are as important as they are ubiquitous. Companies with fewer than 100 employees represent more than 90% of all businesses within North America, tend to be overlooked by traditional sources of institutional capital, and are now changing hands at the highest rate in recorded history due to the retirement of the baby boomer generation of business owners, fewer than 10% of whom have formalized succession plans in place.”
He added: “At a micro level, I can say with confidence that nobody truly knows what it’s like to be an entrepreneur or CEO unless they’ve been one. Personally and professionally, we face challenges and opportunities that few others can relate to. While many understand the rewards of company leadership, few appreciate the arduous journey often required to get (and stay) there. Of all my responsibilities at Mineola, what I value most is the opportunity to work directly with entrepreneurs and CEOs, helping them by sharing my own experiences and lessons learned while occupying the very same seat.”
