Acquisition Criteria
While the universe of investment opportunities continually evolves, our investment criteria are highly consistent. We seek high quality companies led by motivated and skilled executives who want to own as well as run their businesses. We have successfully executed this strategy in several sectors including broadband services, data centers, healthcare services, education, motion picture production and video gaming, among others. However, regardless of the end market being served, our portfolio companies exhibit certain specific characteristics:
- Medium to High barriers to competitive entry
- Predictable, recurring revenues – such as subscription-like businesses with high customer retention rates
- High operating leverage – where moderate increases in company revenues can yield even more rapid increases in operating profit
- Opportunity to significantly increase profitability – through revenue growth, consolidation of expenses, add-on acquisitions leading to efficiencies of scale, or other operating improvements
- Sales: $500,000 – $5 million.
- EBITDA: Minimum $100,000.
- Purchase Price: $500,000 – $10 million.
- Ownership: We insist on 100% ownership. We are a cash buyer.
- Management: Management seeking to remain with the business is preferred. We look for strong, highly motivated entrepreneurial management teams.
- Profitability: Proven profitability for the last three years with future expectations of positive, stable cash flows is preferred, but not required.
- Geography: South East USA.
