Investment Criteria

Size

• Cambria equity of up to $5.0 million.
• Transaction value of up to $25 million.
• Larger equity requirements and transactions can be accommodated with like-minded co-investors.

Industry

• Manufacturing, processing, distribution, transportation, resource or service businesses — excluding situations in retail, technology and healthcare.
• Stable or growing markets with limited cyclicality.
• Minimal risk of technological change.
• Minimal regulatory exposure.

Financial

• Reasonable purchase price.
• Ability to support prudent leverage, whether financed on a cash flow or asset basis.
• Minimum annual historical operating earnings (EBIT) of $1 million for new investments.

Investment Horizon

• Tailored to corporate strategy, but generally holding periods will vary from three to ten years.
• Willing to hold and build positions in attractive companies indefinitely.

Structure

• Equity or quasi-equity securities.
• Control or shared control positions.
• Use of proceeds may be for acquisition of an equity stake; debt recapitalization; or acquisitions, capital expenditures or working capital needs.

Business Considerations

• Sustainable competitive position in a stable or growing market niche.
• Fundamentally sound operating businesses with a multi-year history of profitability.
• No startups or substantial turnarounds.

Management

• Desire of current management to remain — particularly in key functional roles — is preferred but not required.
• Willingness of key executives to make personally significant investments.