Key Business Characteristics

Ownership/Management

Management is the single most important element of any business. Investment groups seek to partner with owners and managers who have proven track records and exhibit a desire to repeat and improve upon past successes. Equity investors look for owners and managers with clear visions for growth and the ability to implement ambitious plans. Generally, they prefer opportunities with continuing management, although occasionally they’ll consider exceptions to this ideal. Attractive compensation program and incentive-based options for owners and/or senior managers are an integral part of most investment philosophies.

Key Business Characteristics

Buyer clients also take into account the following:

  • Sustainable competetitive advantages
  • Multiple opportunities to grow the business
  • Meaningful barriers to entry
  • Fragmented industries with the potential for consolidation
  • Predictable cash flow
  • Consistent history of growth in revenue and earnings
  • Stable or growing profit margins

Growth Rate

The most attractive investment opportunities are in businesses that have shown consistent historical growth. Beyond history, however, our buyers frequently envision opportunities to accelerate future growth — organically as well as through compatible acquisitions, consolidation of operations, etc.