Attributes of Desirable Acquisition Candidates

• A revenue base that provides both a manageable size for timely and effective implementation of operational improvements and a robust platform for follow-on acquisitions
• Underachieving operational results, but not turnaround situations; often improperly capitalized
• Proprietary products, services or processes, not “job shops” or low value-added contract manufacturers; non-commodity product categories that are differentiated by factors other than price and are less vulnerable to competition-based countries with very inexpensive labor
• Unconcentrated and stable customer base
• Industries that are neither highly concentrated nor abnormally cyclical, where success is more dependent on operational execution than technological advances or brand identification
• Industries where the fragmented structure provides opportunities for follow-on acquisitions
• Talented management teams that understand and can effectively implement lean management systems, low-cost global sourcing and/or production strategies, new product/ market growth strategies, and acquisition-driven growth strategies
• Companies satisfying these criteria will likely include private businesses whose owners are seeking growth capital, restructuring capital, or partial or complete liquidity, and non-core divisions of large corporations.