Investment Focus
Over the years we have successfully invested in lower-middle market companies in a variety of industries.
While diverse in industry, our investments generally share the following characteristics:
- Businesses that generate high returns on capital. That is, businesses with few fixed assets and/or low capital expenditure requirements for growth.
- Business models that are sustainable and scalable.
- Companies generating a minimum annual EBITDA of $2 million.
While we are opportunistic in nature we have deep experience and success in the following industries:
- Healthcare service providers, specifically: Home healthcare and behavioral health services (Medicare, Medicaid, and private pay); Nutritional solutions (enteral therapy); Specialty pharma; Residential group homes for people with special needs
- Specialty foods
- Franchisors
- Communications and marketing services
- Manufacturing
- Business Services
Situations that fit well with our experience and objectives include but are not limited to:
- Companies demonstrating potential growth but which lack some of the systems, financial controls, management processes and business plans that are typically required by most private equity firms
- Asset light service-based businesses
- Companies that operate in a regulated environment and consequently require an experienced partner
- Entrepreneurs seeking future financial participation in their business while seeking meaningful liquidity to diversify their net worth today
Process
When we acquire a business in partnership with an entrepreneur, our objective is to provide the resources and strategic guidance required to position the company for accelerated growth while providing a prudent transition plan for the entrepreneur.
The benefits to the selling entrepreneur as a result of our investment include an opportunity to gain liquidity while providing a vehicle to maintain an equity stake in the business for future upside, and if desired, a reduced management role.
