Business criteria

Limited customers’ concentration

High quality business with a diversified customer base; dependency on a few large customers can be risky

Protected/Differentiated

Businesses with a differentiation or sticky products/services or barriers to entry, which protect against new competitors entering the market

Strong Management Team

Experienced management team willing to continue for the next phase of growth and to maintain the legacy of the business

Industry criteria

Non-cyclical

Businesses that operates in an industry that is not highly sensitive to economic cycles, providing more stability and predictability in earnings

Fragmented

Potential for growth through consolidation, innovation, and differentiation in a business that lack significant dominant players in the space

Low capital expenditure

Businesses with low capital expenditure needs, i.e., service-oriented or technology-driven companies that do not require significant investment in physical assets

Financial Criteria

Demonstrated profitability and consistent performance

Consistent historical performance with identified opportunities for potential additional growth such as expanding product lines, or increasing market share

High quality and predictable revenue ($2.0-15.0 million)

Established business (e.g., 10+ years of history) with preference for high percentage of recurring revenue

$0.5-4.0 million of EBITDA

Strong cashflow and less than 5.0x acquisition multiple

Target Industries

While industry agnostic and with a priority focus on partnering with high quality businesses, below an example of target industries:

  • Business services (e.g., IT services, Employee benefit, digital marketing, CFO outsourcing)
  • Professional services (e.g., accounting, visa/mobility, engineering)
  • Healthcare and Wellness/Medical services
  • Industrial services (e.g., critical equipment maintenance and repair, non-destructive testing/ Facilities or equipment inspection compliance)
  • Non-discretionary home services (e.g., HVAC, Plumbing, Roofing, Landscaping)
  • Niche or asset-light manufacturing
  • Niche Distribution
  • Restoration services (e.g., water, fire, storm damage restoration)