Our Main Investment Criteria
Industry
Financials
Business
Geography
• Recurring or service-linked revenue model (services or equipment with embedded services)
• Motivated sellers
• Private and concentrated ownership
• Opportunity for the Principal to add value
• Low customer concentration and churn
• Strong middle management
• Professionalization opportunities
• AI as a potential 'add-on' for efficiency
• High organic growth potential
• Large and fragmented market
• Low cyclicality
• Low risk of adverse regulatory changes
• Non-commoditized product or service offering
• Low risk of technology obsolescence
• Low dependance of government contracts
• High competitive barriers
• Brazil (focus on mid-sized companies)
• Recurring and/or contractual revenue stream
• Annual revenues above US$ 10 million
• High gross margins
• EBITDA margins above 15%
• Annual EBITDA above US$ 3 million
• Positive cash-flows over last 3 years
• High Free Cash Flow conversion
• Return on Invested Capital (ROIC) above 20%
• Very little to no debt outstanding