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We look to invest in companies with between $2 million and $7 million of EBITDA that meet the following four criteria: |
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Understandability |
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The business is already well understood by our principals or is one in which we can gain a solid understanding during due diligence. We often look at businesses in the following industries: security services, consumer products, publishing/media, niche manufacturing, food and beverage and restaurant. |
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Strong Operating History |
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The company has a strong operating history marked by steadily growing revenue and cash flow rather than cyclicality or recent growth and momentum. |
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Defensibility |
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The business model is inherently defensible so that the company can withstand competitive attacks without simply lowering price. |
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Management |
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The company has excellent management, or at least the core of a strong management team. |
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