Types of Investment
We purchase majority equity positions in operating businesses and this can take several forms:
Complete buyout, where the owner prefers a clean break
Phased Transition, where the owner wants to stay engaged for a few years
Buyout Majority Owner, where minority shareholders remain with the business
Business Size
We are focused on businesses with a long-term track record, not start-up operations. The business must show at least three years of profitable operations and we would prefer a business that has been in operation for 10+ years. Ideal firms are businesses with $2M – $20M in annual revenue and $300k – $3M in annual EBITDA (or SDE).
Industry Focus
Almost any industry or product line could be interesting, but we are primary focused on companies that provide mission critical service or products, with a strong service element. The opportunities could be in manufacturing, business services, distribution, logistics, construction, technology, etc. We are most interested that the business has a strong track record, a diversified customer base, a good reputation and is focused on customer service and quality.