We’re looking for stable, enduringly profitable businesses.
Some of the criteria we look for:
Industry
Highly fragmented; no single large competitor
Stable, low cyclicality
Growing (~2x GDP)
Low external risk factors (regulatory, technical obsolescence)
Financial
Annual revenue between $2M and $20M
Stable revenue growth
EBITDA of at least $300K
EBITDA margin of at least 10%
Ideal: Low capital and capex requirements
Company
High percentage of reoccurring/repeatable revenue
Diverse customer base
Strong market position
strong middle management and committed employees
Ownership
Private ownership with no succession plan (ideally retiring)
Owner seeking liquidity; motivated to ensure smooth transition
Company in need of additional management, capital and board expertise to continue to grow