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Investment Criteria

New Orchard Capital’s strategy is to acquire a stable, relatively non-capital intensive, established company with a history of stable, recurring customers and predictable cash flows. The principals will focus their efforts on businesses in which the owner wishes to fully exit or significantly reduce his or her involvement in the management of the company.

Business

  • Distinctive and defensible market position
  • Strong and diverse customer base
  • Straightforward operations
  • Strong middle-management team
  • Owner seeking a reduced role in business, and/or exit transition
  • Positive and steady cash flow

Industry

  • Service-based industry
  • Preferably B2B
  • Sustainable, defensive market position
  • Fragmented competitive landscape with no clear dominant player
  • Total potential market > $1B
  • Growing industry

Financial

  • $8 to $60 million in annual revenue, with heavy recurring component
  • $2 to $12 million of predicable annual cash flow
  • 3+ years of profitability
  • 15%+ EBITDA margins
  • Low capex and working capital requirements