It's all about value

Investing in private businesses requires a careful evaluation of current and future value

The regions in which we focus are covered with great businesses - companies that have started, grown, and now form the foundation of our economy. When considering businesses for investment, however, we take a disciplined approach guided by a value analysis that goes beyond financial metrics. We also consider the team, growth potential, industry, and geography. Keep reading.

First and foremost, we work with people that we can trust. All parties to a transaction - us, the seller, and the management team - must be able to trust each other. We believe that building trust starts with being trustworthy, and we work to demonstrate this with honesty, integrity, and transparency. We expect the same from the teams with which we work.

When evaluating prospective investments, one important criterion we consider is the growth potential of the company we're examining. Is the revenue model scalable? What is the cost of acquiring new customers? Are new bookings trending in the right direction? Is there an opportunity to up-sell and cross-sell new products or services? Is there are recurring revenue model? And, if so, how does the team manage churn?

After closing, we focus on growth by building the business and avoid burdening the company with excessive debt. We do not design highly leveraged deals, and would rather see our investments grow by reinvesting earnings - not paying down the balance sheet.

We focus on lower middle-market companies, typically resulting in transaction sizes of $20 million to $200 million, because we believe that companies of this size are particularly well positioned to benefit from our operational approach.

If your company meets these criteria, or you'd like to discuss a potential transaction in more detail, please reach out to us. Our contact information is here.

Financial Criteria

  • EBITDA: $2MM - $20MM
  • Revenue: $5MM - $100MM
  • Operating Margin: > 10%

Industry Focus

While we will consider most industries, we have a particular interest in the following:
  • Business services
  • Software
  • Digital media
  • Manufacturing
  • Telecommunications
  • Financial tech & Services

Transaction Types

  • Change of Control
  • Recapitalizations
  • Corporate Spin-Outs
  • Public-to-Private

Geographies

We will consider businesses located anywhere in the US and Canada, but prefer companies located east of the Rockies. We have strong connections in the following regions in particular:
  • Upstate New York
  • Southeast
  • Midwest