Investment Criteria
Conormara seeks to acquire or invest in companies that have growth potential, but lack appropriate financial resources and/or management strength to capitalize on opportunities.
Description
Niche Manufacturing, Value-added Distribution, Service businesses, or Franchisors.
Financial Characteristics
- Minimum revenue of $2 million
- Positive cash flow and EBITDA greater than $500K
- High gross margins (> 40%)
- Transaction size $1-10 million
Company Characteristics
- A value-added business model (e.g., brand, unique product/service, exclusivity)
- Opportunity to grow through marketing leverage
- Growing niche or underserved market
- Some level of management in place
- Repeat customers and recurring revenue streams
- Low-risk of technological obsolescence
Business Owners
Ideal sellers are family-owned enterprises where the owner(s):
- Seeks to retire, reduce their full-time responsibilities or create liquidity
- Seeks capital and expertise to grow the business
- Seeks to exit, but remaining shareholders would like to continue and need a partner
- Understands the company needs assistance to grow and improve, for an exit in the next 2-5 years