Investment Criteria

Specifically, we look for companies with the following characteristics.

• We are often asked what "size" company we like to invest in. While we do not want to use any particular financial parameter to define our scope of interest, those businesses that fit our strategic focus will probably have positive annual Operating Cash Flow (EBITDA) in the range of $1 to $5 million and valuations between $3 million and $20 million.

• Our strong preference is to partner with high quality management teams, capable of operating a leveraged business.

• We are looking for established businesses with above-average growth prospects, defensible market positions, and good margins.

• We are seeking investments where there is an opportunity to scale the business either through internal growth or "bolt-on" acquisitions.

• We avoid start-ups, turnarounds, low margin commodities, and unstable business models.

We can act quickly to assess our initial interest. However, we take a thorough and disciplined approach in our evaluation of business opportunities and will work diligently to complete an investment transaction.

We have the flexibility and skills to structure complex transactions to meet the needs and desires of the owners, whether it is a family-owned business or a public company.

We are sensitive to all seller objectives, not just price, and can provide a liquidity event for an owner who wants to diversify his or her net worth but has a desire to continue in the business.