Investment 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.

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.
  • Consumer

  • Media

  • Healthcare

  • Education

  • Business services

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