Company and Industry Preferences:
- Manufacturing, distribution or service companies focused on business customers and markets.
- Midwest-based (OH, IN, MI, IL, KY, PA, WV).
- In or serving industries with above-average growth prospects.
- Change of control transactions with an exiting owner/operator.
Key Financial Characteristics:
- Sales of $10 million to $50 million.
- Consistent profitability over past 4 years.
- Operating earnings above $1 million.
- Operating margins at least 10%.
- Modest working capital and capital expenditure needs.
- Valuations at a fair and reasonable multiple of trailing operating earnings.
Desired Company Characteristics:
- High average tenure of employees.
- Proprietary products and/or processes.
- Commanding share of a growing niche market or small (but growing) share of a large, stable market.
Avoided Industries:
- Retail
- Construction
- Consulting
- Job Shops (machining, tool & die, molding, stamping, etc. without their own products)