Investment Criteria
Crofton Capital's acquisition interests are broad as we seek to identify established small and midsize businesses with growth prospects. Our investment approach is directed at acquiring a majority or 100% interest in such companies in transactions that meet the needs of owners and other stakeholders while providing the business with a springboard for success. Specific areas of focus are indicated below.
Company Characteristics
Sectors of Interest
Ownership
Transaction Types
We welcome introductions to business owners who are considering the sale of a company that matches these criteria. We are happy to pay fees as appropriate for introductions to transaction opportunities that result in successful closings.
Company Characteristics
- Annual revenue up to $50 million.
- Annual operating cash flows (EBITDA) of $1 - $5 million.
- New England and northeast-based preferred, though consider all U.S.
- Defensible positions in niche markets with distinctive product/service elements that deliver enduring value to customers and sustain the need to maintain on-the-ground operations in the U.S.
- Verifiable base of customers with some customer diversification.
Sectors of Interest
- Niche manufacturing.
- Value-added distribution (where product is enhanced by distinctive service).
- Business services.
- Software and technology-enabled services.
- Consumer products and services.
Ownership
- Control transactions involving the purchase of >50% of the equity ownership (i.e. no minority equity investments).
Transaction Types
- Purchase of a family-owned/closely-held business from owner-operator or passive owners (owner may retain continuing ownership interest).
- Support of management buyout (MBO) of a closely-held business.
- Corporate divestitures involving the buyout of a non-core division of a larger company in partnership with either existing divisional management or an outside management team.
- Purchase of portfolio company from a private equity firm when the company has been owned for longer than desired and/or is no longer tracking the initial investment thesis.
We welcome introductions to business owners who are considering the sale of a company that matches these criteria. We are happy to pay fees as appropriate for introductions to transaction opportunities that result in successful closings.