Investment Focus

INVESTMENT FOCUS

Successful Small Companies with Growth Potential

Ideal Small Company Characteristics

  • Annual revenue between $500 thousand and $10 million
  • Annual cash flow between $200 thousand and $5 million

Companies must meet the following criteria

  • ROIC of 20% or more
  • Strong earnings growth
  • Stable to improving margins
  • Strong, vested management team
  • Sustainable competitive advantage
  • Minimum operating history of seven years

Transactions that Meet the Needs of Company Owners

  • Acquisitions
  • Family and Founder-led Company Transitions
  • Generational Transitions
  • Management Buyouts
  • Leveraged Buyouts
  • Recapitalizations
  • Growth Capital
  • Corporate Spin-Offs

Types of Companies We Own or are Seeking

  • We are seeking excellent, “boring” businesses in services, healthcare, manufacturing, distribution, and other industries that meet our investment criteria.
  • Low capital intensity
  • Low debt
  • Located in United States, primarily Texas