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INVESTMENT CRITERIA
Financial
Measures. Preferably, investment candidates will
have reached sales of $5 million to $25 million or more with EBITDA in excess
of $1 million. Will occasionally
consider early stage opportunities with proven revenue streams, approaching
breakeven.
Geography. Firms with home offices located in the Carolinas, Georgia or
Florida are preferable.
Accelerated
Growth Opportunity. Preferably, companies should be
defensible, scalable and at a stage where additional financial investment
and/or expertise may propel them forward at an accelerated rate. True turnarounds are not of primary
interest.
Strong
Core Management. Critical to the success of any
commercial enterprise are strong managers who possess a detailed understanding
of customer needs and their behaviors, as well as functional skills –
particularly in sales, operations and finance. It is anticipated that management teams associated with investment
companies may be complemented by the general management, strategic planning and
finance experience of principals.
Proven
Model. Although some may be small and
have yet to achieve break-even, the business and economic foundation of the
enterprises should be proven.
There should be steady organic growth where future growth is driven by
industry and/or business fundamentals with little exposure to short-term trends
and with low risk of technological obsolescence.
Products
or Services Meet Recurrent Needs or Exploit Emerging Trends. Ideally the products and/or services offered by
investment candidates would be ones that meet recurrent demands and may not be
categorized as one-time or infrequent sales. In addition, businesses should compete in categories where
demographic, regulatory, and economic trends are favorable.
Competitive
Advantage and Solid Brand. Companies should have favorable
reputations and differentiated approaches to doing business.
Industry
Preferences. Business/consumer
services; distribution and logistics; healthcare; specialized manufacturing;
environmentally sensitive firms; and those poised for the “green movement.”
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