Investment Criteria
Decatur Street Capital is targeting companies with the following characteristics in its search to acquire a small business to own and operate long term.
Company
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Established founder-led or family-owned small business with 5+ years of operations
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Strong market position with specific competitive advantages
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Longstanding relationships with existing customers, suppliers, and employees
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Current owner actively seeking
a sale of the business
Financials
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Minimum EBITDA of $250k with operating margins >15%
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3+ years of profitability and steady growth
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High percentage of recurring revenue from a stable and diverse customer base
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Limited ongoing capex requirements
Industry
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Past history of industry growth expected to continue going forward
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Highly fragmented with no dominant market participant
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Identifiable high barriers to entry
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Limited seasonality or cyclicality