Industry

• We will consider business proposals in all industries. Currently, though, we are favoring basic industries including manufacturing, service, transportation, and distribution that, in general, are not subject to rapid technological change or wide cyclical swings.
• Any company that has a well-defined industry focus and a potential/strong competitive position in its marketplace.
• Industries that have significant barriers to entry.

Size

• Revenues of at least $1 million.
• The exception to this rule is for start-ups that have a clear strategy with a potential of becoming a catalyst.

Historical Cash Flow for Established Companies

• Minimal historical cash flow for the preceding 12 months of $1 million.
• Cash flow adequate to service projected debt level.
• Moderate level of total debt to cash flow.

Management

• Strong, experienced and entrepreneurial management team.
• Manager/owners who have a significant ownership interest or risk capital in their company
• Clearly defined strategic vision with the experience and dedication to meet the potential challenges of a rapidly growing business.

Capital Structure

• The post-investment financial structure must fit the particular capital requirements of the company that will provide sufficient long-term capital for growth.

Operating Systems

• The post-investment financial structure must fit the particular capital requirements of the company that will provide sufficient long-term capital for growth.

Exit Strategy

• The strategic plan should include a period and a mechanism for realization of shareholder value. Acceptable exit strategies include the sale of the company, re-capitalization, or an IPO.

Geography

• United States, with the primary emphasis on Mid-Atlantic/Northeast.
• Latin America, with the primary emphasis on Mexico.
• Europe: Western Europe Only

Investments Not Considered

• Mature Stage Companies
• Rapidly Changing Technology
• Distressed Debt
• Leasing or other Financial Lending Companies

Next: Investment Structure