Investment Strategy and Criteria

Target Firm Criteria

Strategic Profile

  • Essential solution to a pressing, recurring problem

  • High-percentage of repeating/recurring revenue

  • Increasing barriers to entry (and/or existing supply constraints)

  • High industry fragmentation

  • High customer-defined product/service value differentiation

  • Low customer concentration

Financial Profile

  • $2 - 3M in Gross Revenue per year

  • 60%+ revenue from business customers

  • 25%+ Net Income margins

  • 5%+ annual growth for the trailing 5 years (adjusted for COVID)

Operational Profile

  • 10 - 15 employees; at least 3 of which are in technical knowledge roles

  • Average tenure of employee is 5+ years

  • Owner ready to assist with transition, and client continuity for 9 - 12 months

  • ~100% employee retention post-acquisition

  • Highly rated customer feedback/reviews on product/services offered

Locations of Interest