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If the Shoe Fits…

Company Characteristics

StoneCreek considers the qualitative as well as the quantitative characteristics of a company when considering an investment opportunity:

Qualitative
 
Quantitative
a Proven Management   a EBITDA of at least $2 million
a Team with vision, ability and commitment   a Revenues of at least $10 million
a Headquartered in the U.S. (preferably West Coast)   a Historical growth and profitability (for minimum of three years)
a Niche market focus   a Significant growth opportunities
a Strong brand identity      
a Limited capital intensity      
a Low technology or obsolescence risk      

We target investments in companies that have multiple avenues to grow value, including revenue growth, cost rationalizations and improved operations, as well as strategic acquisitions.


Industry Preferences

StoneCreek’s principals have expertise in a wide range of industries. While we do not limit ourselves to one industry segment, we do focus on companies in industries supported by long-term macro economic trends and those that we believe will benefit from macro demographic trends (population growth and mix, demand, etc.). Areas of particular interest are:

INDUSTRY
AREAS OF INTEREST
Manufacturing

Contract | Niche

Consumer Products
Branded | Automotive Accessories | Hispanic Oriented
Food Service
Products (Food & Non-Food) | Services | Restaurants
Business Services
Distribution | Transportation | Direct Marketing/Advertising

 


Transaction Structure

StoneCreek prides itself on providing flexible, creative and conservative structures to fit the needs of the specific company and owner’s requirements (common equity, preferred equity, subordinated debt, seller paper, and/or earn outs). Typical transactions have the following characteristics:

v Enterprise value of $10 million to $50 million
v Minimum equity investment of $5 million
v Control or minority equity investments
v Opportunity for sellers to retain significant equity upside
v Investment horizon of 5 to 7 years

While leverage is used to enhance investment returns, excessive leverage is avoided.