Investment Criteria

Investments should have:

• Relatively simple and straight-forward business which is easy to understand;
• Business model with recurring revenue which is scaleable and/or replicable;
• Clearly differentiated products or services;
• Local / regional market presence with potential to expand nationally or globally;
• Existing or potential-for broad brand recognition;
• Opportunities for streamlining operations and improving upon existing processes;
• Growth opportunities identified and clear action plan to implement;

Financial criteria:        

• Revenues ranging from $10MM to $60MM;
• 2007 EBIT minimum 10% of sales; 2008-09 profitability less important;
• Cash-flow positive or breakeven in Q1 2009 with healthy outlook
• Under-performing is OK; however, we avoid seriously-troubled situations;
• Early-stage company OK, but clear path to positive cash-flow is required;

Market / Industry Focus:

• Strong fit with career experience of the executive which we sponsor;
• Generally – opportunistic approach
• Engineered-product company; (with selective in-house manufacturing);
• Value-add distributor with final assembly, test, delivery, and logistics;
• Products sold to either consumer or industrial customers;
• B2B service businesses; No B2C service businesses;
• IT-enabled service businesses;
• Billings, claims, and/or similar document processing;
• Staffing company (financial, clerical, technical, IT, engineering, healthcare);

We avoid the following:

• Heavy manufacturing and restaurants