Investment Criteria
Our strategy is to acquire a stable, relatively non-capital intensive, established company with a solid history of recurring customers and predictable cash flows. The partners will focus their efforts on businesses in which the owner wishes to fully exit or significantly reduce his or her involvement in the management of the company.
Business
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Distinctive and defensible market position
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Strong and diverse customer base
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Straightforward operations
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Strong middle-management team
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Owner seeking a reduced role in business, and/or exit transition
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Positive and steady cash flow
Industry
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Service-based industry, with strong recurring revenue
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Preferably B2B
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Sustainable, differentiated market position
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Fragmented competitive landscape with no clear dominant player
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Total potential market > $1B
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Growing industry
Financial
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$5 to $25 million in annual revenue, with heavy recurring component
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$1 to $5 million of predictable annual cash flow
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3+ years of profitability and cash flow growth
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15%+ EBITDA margins
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Low capex