Cambria seeks investment and acquisition opportunities which generally meet the following criteria:
- 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 agnostic, but historical investments include manufacturing, processing, distribution, transportation, resource, service businesses, multi-location healthcare, and Saas.
- Stable or growing markets with limited cyclicality.
- Minimal risk of technological change.
- Minimal regulatory exposure.
- 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.
- Tailored to corporate strategy, but generally holding periods will vary from three to ten years, though we have held select investments for over 20 years.
- Willing to hold and build positions in attractive companies indefinitely.
- 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.
- 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 unless we know well the lead investors.
- 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 where relevant.