Araquot seeks companies that have stable cash flow and future growth potential, both organically and through acquisitions. We are comfortable acquiring businesses that have under-performed in recent years, but where we can identify and develop a strategy for future improvement. These companies may be independent, family business without a clear successor or non-core divisions within larger companies.
When considering a specific company, we typically use the following criteria:
Specialty publishing / new media, direct marketing (catalog, web), value-added distribution, consumer / retail, niche / light manufacturing, and business service companies
Traditional buyout structure
Revenue: $1 million to $20 million
EBITDA: $0.3 million to $3 million
Headquartered in the United States
Characteristics we also look for include:
Positive historical cash flows
Attractive and defensible market position
Stable competitive dynamics
Recognizable growth opportunities
Araquot also considers acquisitions of distressed companies that might not meet some of the above criteria as a result. Such investments are made in businesses where we can develop a plan to return the business to sustainable profitability and create long-term equity value.