Industry

• Manufacturing or distribution industry
• Absence of dominant competitors
• Mature industries

Financial

• Reliable, recurring revenue
• Ability to generate high returns on tangible capital
• Minimum EBITDA of $500,000
• EBITDA margin greater than 10%
• Low debt levels
• Low to moderate historical growth with untapped potential
• Revenue $2 – 20 million

Company Specific

• Defensible market position with clearly identifiable competitive advantage
• Limited customer concentration
• Opportunity to create value through horizontal and/or vertical integration initiatives
• Strong management team
• Low employee turnover
• Low to moderate capital intensity