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.
Western New York – i.e., Buffalo to Mohawk Valley.
Between $2.5MM to $100MM
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%
Acquire, at a minimum, controlling ownership interest – complete acquisition strongly preferred
Upon acquisition, Lorraine intends to help operate the acquired company
Middle Management Strength:
The company possesses strong operations and sales-based middle management
Seller willing to stay on for a period of time to be negotiated following acquisition
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
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
(i) Health Care
(ii) Food-Based – i.e., service, distribution, logistics, etc.
(iii) Niche Manufacturing
(i) Traditional commercial printing
(ii) Seasonal industries
(iv) IT services