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Investment Criteria – Middle Market Acquire & Grow

Our firms objective is to executive a leveraged buy out, through an infusion of equity and debt financing, utilizing the company’s cash flows and assets as collateral to secure the assets or stock of a target investment. Middle-market acquire and grow investment targets are excellent opportunities for an LBO model, creating opportunities for debt retirement and capital to fund growth.

Stone Fox Ventures top tier target investments are middle-market manufacturing, distribution and service companies in both mature and growing industries. Investments are possible in both companies with actively engaged long term management teams, and those who’s executives may be retiring or exiting. Our profile for middle-market, acquire and grow companies is generally as follows:

Sales

$5 million – $100 million

EBITDA

No Minimum Requirement

Gross Margins

30% – 40% +

Industries

B2B Manufacturing, distribution and service companies with industrial customers in mature and growing industries.

Management

Stable, growth minded management teams or those in need of executive replacements.

Profitability

Operating profitability for two to three years with pro forma projections of continued positive cash flows.

Geography

Headquartered in Michigan, Indiana, Ohio, Illinois, Wisconsin or Kentucky.

Additional Key Factors

Industry recognized brand, proprietary / patented or distinct products, niche markets, marketshare or position, competitive advantages