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Our investment strategy is centered on leveraging our expertise to bring value to the companies in which we invest. Our mission is to identify opportunities where we can help entrepreneurs and their management teams accelerate growth, both organically and through acquisition, to maximize the potential of each investment we make. I'm eager to hear from principals or their representatives about businesses that meet the following criteria:
Industry Focus
Consumer Services
- Education
- Healthcare
- Home Services
- Restoration Businesses
- Storage
Consumer Products
Business Services
- Logistics
- Facility Services
- Manufacturing
Less Desireable
- Staffing businesses, main street businesses (restaurants, dry cleaners, salons, convenience stores, and accounting/medical practices), and franchise opportunities
Investment Parameters
Financial Characteristics
- Annual revenue of $3.8 to $20 million
- Demonstrated consistent earning power (not interested in turnarounds nor projections)
- Low to moderate revenue growth with consistent return on equity
- SDE/EBITDA of $750k to $5M
- EBITDA margins of 20% or more
Structure
- Cash (equity and/or leveraged buyout)
Target Company Characteristics
Desired Business Attributes
- High portion of repeat customers with an outstanding customer reputation
- Fragmented customer and/or supplier base
- At least one clear competitive advantage that separates themselves from the competition through a variety of factors such as operational expertise, branding, differentiated services/products, and/or superior service
- Large addressable market, high barriers to entry, with potential acquisition opportunities
Owner Situation
- Owner(s) seeking full sale of the business
- Owner(s) to participate in efficient transition period of 3-6 months for which they will be compensated
- Remaining high quality middle management, and
- Long standing employees with high retention and a strong mission-driven culture
- An offering price (I do not want to waste our time or that of the seller when price is unknown)
Geography
- Based in the midwest (preferrably Michigan)
- Willing to consider if day trip capable
Off Limits
- Turnarounds, start-ups, unstable performance, or unfriendly takeovers
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