Investment Criteria
We generally look to partner with companies that exhibit the following characteristics:
Financial Criteria
Revenue: $5.0mm - $30.0mm
EBITDA: $1.5mm - $8.0mm
History of revenue stability
Recurring / re-occurring revenue streams
Stable, predictable cash flow margins
Track record of capital efficiency
Asset light with minimal CapEx and NWC requirements
Business Criteria
Regionally dominate leader with niche, differentiated service / product offerings
Address large and growing end-markets
Operate in fragmented industries with minimal exogenous risk
Diversified customer base (top customer <20% of total revenue)
Organic and in-organic growth opportunities
Management Profile
A business owner(s) / operator seeking a sale or other liquidity event
Owner(s) / operator seeking a non-institutional buyer with legacy preservation mindset
Founder-owned / closely-held ownership
Experienced middle-management (i.e., non-owners) seeking to remain on board
Industries of Interest
Light Manufacturing
Non-heavy machinery production of engineered, designed or specified products intended for niche industrial use
Target sub-sectors include aftermarket manufacturing, contract manufacturing, consumable / MRO products among others
Value-Added Distribution
Raw materials processing, sub-assembly, semi-finished and finished goods processing, packaging and distribution
Target sub-sectors include automotive, building products, chemical, electrical and diversified utility among others
B2B Services
Commercial services involving the installation, service, repair and replacement of critical infrastructure or capabilities
Target sub-sectors include environmental services, facility management, healthcare services, testing and inspection among others