Investment Criteria

Lorraine Capital is a private investment firm focused on acquiring controlling positions in businesses with a Western New York presence and, through an investment of both capital and personnel, helping those businesses grow and prosper.

Geographic Limitation

Western New York – i.e., Buffalo to Mohawk Valley.

Financial Criteria

Revenue Range:
Between $2.5MM to $100MM

Gross Margin:
At least 20%

EBITDA margins of at least 5%; preferable that last reportable year be greater than $100,000

Cash Flow History:
At least three years of historical, positive cash flow measured from current date

Annualized projected growth over the next five years at least 2.5%

Non-Financial Criteria

Acquire, at a minimum, controlling ownership interest – complete acquisition strongly preferred

Operational Ability:
Upon acquisition, Lorraine intends to help operate the acquired company

Middle Management Strength:
The company possesses strong operations and sales-based middle management

Seller Involvement:
Seller willing to stay on for a period of time to be negotiated following acquisition

Strategic Advantage:
The company maintains strong market position in industry and industry offers barriers to entry. Preferably, the company maintains a high degree of customer retention without significant customer concentration

Capital Expenditures:
The company has a track record of avoiding capital expenditures

Opportunities for strategic add-on acquisitions exist, yet the company has not pursued such acquisitions

No specific timeline for exit required. Preferred that industry is fragmented and possesses history of acquisitions by strategic buyers

Examples of Preferred & Non-Preferred Industries1

Preferred Industries:
(i) Health Care
(ii) Food-Based – i.e., service, distribution, logistics, etc.
(iii) Niche Manufacturing
(iv) Distribution
(v) Energy

(i) Traditional commercial printing
(ii) Seasonal industries
(iii) Retail
(iv) IT services

[1] This list contains examples of preferences – it is neither an exhaustive, nor all-inclusive list. Companies in other industries will be happily considered.

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