Robert is interested in businesses with the following characteristics
financial & operating characteristics
Annual sales greater than $8 million
Cash flow greater than $1 million
At least 3 years of profitability
A demonstrated history of sales growth
Strong, defensible value proposition to its customers
Recurring revenue from long term customer relationships
Low capital expenditures and working capital required to operate the business
Low customer concentration
Headquartered in the U.S.A. or Canada
seller characteristics
Founder owned and operated business
Seller is looking to sell a controlling stake in the business
Seller is looking to retire or reduce time commitment to focus on a narrower set of responsibilities (e.g., R&D, sales, etc.)
Seller is willing to assist with a transition of leadership
Seller values a committed partner willing to relocate, preserve the legacy of the business, and focus on the long term success of the company
Seller wants to avoid selling to a competitor
industry characteristics
Addressable market greater than $300 million
Industry growth greater than 4%
Fragmented industry (i.e., no dominant competitors)
Non-cyclical
sample industries
Business services
Industrial technology
Light manufacturing / assembly
Consumer healthcare services
Blacktop does not invest in firms with the following characteristics
Restructuring / turnaround situations
Unprofitable businesses
High technology businesses
Balance sheet financial institutions
Businesses headquartered outside the U.S.A. or Canada