INVESTMENT SELECTION

Crosse+Partners invests in small to middle market companies primarily based in California, however, we will also look at attractive opportunities in Nevada, Arizona and other Western territories. We focus on established and profitable companies operating in the manufacturing, distribution and service sectors. Investments up to $10 million are considered and are made on a controlling basis through a variety of leveraged buyouts, consolidations, recapitalizations and growth financing transactions.

Other characteristics of companies that Crosse+Partners will consider include:

• Definable, understandable and scalable business model;
• Well developed and growing markets;
• Proven products/processes, unique competitive advantages and opportunities to grow both internally and through acquisition;
• Record of consistent, predictable cash flow up to 2.5 million;
• Operating margins in excess of 10%; and
• Viable exit strategies.

We are interested in companies whose future performance is supportable by historical trends and whose products or services are basic and essential, not subject to fashion or rapid technological obsolescence. We prefer to acquire companies that have a clear vision to expand, whose market share can be improved in a concentrated industry, or companies that have, or can reach, a leadership position in a fragmented market.

While the company should have a relatively clean operating record, we may entertain unique situations where there are clearly identifiable problems, a management plan in-place to correct those problems, and evidence of progress.