INVESTMENT CRITERIA

Image by Federico Beccari

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

  • Distinctive and defensible market position

  • Strong and diverse customer base

  • Straightforward operations

  • Strong middle-management team

  • Owner seeking a reduced role in business, and/or exit transition

  • Positive and steady cash flow

Industry

  • Service-based industry, with strong  recurring revenue

  • Preferably B2B

  • Sustainable, differentiated market position

  • Fragmented competitive landscape with no clear dominant player

  • Total potential market > $1B

  • Growing industry

Financial

  • $5 to $50 million in annual revenue, with heavy recurring component

  • $1.5 to $10 million of predictable annual cash flow

  • 3+ years of profitability and cash flow growth

  • 15%+ EBITDA margins

  • Low capex 

Select investments our partners have made based on our investment criteria

FastSpring.png
Voxco logo.png
Utility Cloud.png
Lexshares-1.png
Skin Center.png
QCSS.png
WaveCrest.png
Navegate.png
wolinDesignGroup-Logo.png
Paragon.png
Red Cat.png
PalCare-Logo-nurse-call-for-senior-livin
Chronus.png
Field-Edge.png
ISPN Desk.png