We focus on established privately held companies with sound operating fundamentals, durable demand, and a practical path to long-term ownership. These criteria describe the businesses we typically pursue, but we will consider exceptional opportunities that fall outside a particular range.

Industry

Manufacturing, industrial distribution, specialty fabrication, packaging, components, and related B2B operations.

Revenue

Typically $3 million to $15 million in annual revenue. Revenue is a guide rather than a hard limit when the underlying economics are compelling.

Operating Earnings

Typically $750,000 to $2.5 million in adjusted operating earnings, including EBITDA or SDE depending on the size and ownership structure of the business.

Geography

Primarily the Southwestern United States, with consideration given to compelling opportunities elsewhere in the country.

Ownership & History

Privately held companies with an established operating history, demonstrated customer demand, and financial performance that can be reasonably verified.

Management & Transition

Owner involvement is not a disqualifier. We look for businesses where responsibilities, relationships, and operating knowledge can be transferred through a practical transition plan.

Real Estate & Facilities

We prefer to acquire the real estate occupied by the business as part of the overall transaction. When facilities are leased, we require sufficient long-term control of the location through an existing or newly established lease acceptable to us before closing.

Transaction Structure

Our primary focus is controlling or full acquisitions. Transactions may use senior lending, SBA financing, seller financing, buyer equity, and other appropriate structures based on the economics of the business and transaction.

We prefer to acquire the real estate occupied by the business as part of the overall transaction. Ownership of mission-critical facilities provides greater long-term operating stability and reduces unnecessary lease renewal risk.

The operating business and real estate may be financed separately when appropriate.

Leased Facilities

Businesses operating from leased facilities will be considered when the location and facility are suitable for long-term operations and a satisfactory long-term lease is in place, or can be established as a condition of closing.

We generally will not acquire a business where continued occupancy depends upon a short remaining lease term or an uncertain post-closing lease negotiation.

Facilities

We place significant value on control and continuity of the operating facility.

When the seller owns the property, our preference is to acquire it with the business. When facilities are leased, we evaluate lease term, renewal options, rental economics, assignment rights, property condition, and the operational difficulty of relocation as part of our acquisition review.

We prefer to be clear about where we are unlikely to be the right buyer.

• Pre-revenue companies
• Early-stage startups
• Severe distressed turnarounds
• Businesses dependent almost entirely upon one departing owner
• Businesses with unresolved material legal or regulatory issues
• Businesses requiring speculative projections to justify valuation
• Businesses where financial records cannot reasonably support diligence

Send us a short overview. If the business appears to fit our criteria, we will respond quickly and tell you whether a conversation makes sense.