Araquot Partners | Criteria

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.

Characteristics of desirable businesses include:

Positive historical cash flows

Attractive and defensible market position

Stable competitive dynamics

Recognizable growth opportunities

When considering a specific company, we typically also use the following criteria:

Niche / light manufacturing, value-added distribution, consumer / retail, specialty publishing / traditional media and business service companies

Traditional buyout structure

Target company profile: $10 million to $50 million in revenue; $1 million to $5 million in EBITDA

Headquartered in the United States

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.