Investment Criteria

Steelwood Capital is actively looking to acquire a controlling interest in a privately-held company with an owner seeking liquidity. We are focused on opportunities anywhere within the contiguous US. Our criteria for investment are as follows (see bottom of the page for opportunities we are not interested in):

Financial

• 3 plus years of continuous profitability

• EBITDA margins of 15% or more

• Revenues up to $25M

• Demonstrated earnings growth

• Recurring or highly repeating sales

Operational

• Privately-held with a clear ownership structure

• Unique and distinct competitive advantage

• Strong potential for organic growth

• Focused and straightforward business model

• Diverse customer base with high retention rates

• Experienced and driven middle management team

Context

• Owner seeking exit for non-business related reasons

• Owner looking to step back from day-to-day management

• Non-management shareholders seeking to divest ownership

• Shareholders or company looking to divest non-core business

• Serial entrepreneurs ready to take on their next venture

• Solid employee relations, with industry appropriate retention rates

We are not interested in the following types of opportunities:

• Minority investments or growth capital needs only

• Early stage companies, start-ups, or new industries

• Distressed or turnaround situations

• High levels of capital intensity