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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

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