Industry Characteristics
- Sizeable and growing industry
- Fragmented competitive landscape
- Low threat of external shocks (e.g., technological, regulatory, legal, environmental, fashion)
Company Characteristics
- Operations based in Canada
- Low customer concentration and recurring cash flows
- High growth potential
- Sustainable competitive advantage that is difficult to replicate
- Simple operations with low technological risks
Owner seeking to
- Exit the business completely
- Transition to lesser role in the business
- Add management capabilities and a seasoned board of directors
Financial Profile
- 3 consecutive years of profitability
- Revenues between $5 million and $50 million
- EBITDA margins > 15%