Focus
The search is focused on large, fragmented and steady growing industries. Examples of those industries include outsourced business services, light industrial manufacturing, and software as a service (SaaS).
Linbrook Capital founder Kyle Marta is focused on identifying companies with enduring profitability within those industries. These are companies with a strong middle management, a track record of healthy margins and recurring revenue, and a competitive advantage to sustain and grow their profitability and market share. These companies are also not dependent on few customers, products or markets.
In recognizing that many outstanding companies will not meet every single one of these desired characteristics - Linbrook remains flexible to evaluate every opportunity on a case-by-case basis.
Industry
Industry Characteristics:
• Large and growing industry
• Low cyclicality and regulatory risk
• Fragmented landscape
Industry Examples:
• Outsourced Bus. Processes
• Specialty Software (SAAS)
• Light Manufacturing
Business
Financial Characteristics:
• $2 - $30M annual revenue
• $500k - $5M annual cash flow
• History of steady growth
Business Characteristics:
• Strong middle management
• Healthy margins
• Recurring revenue
• Strong competitive advantage
• Diverse, loyal customer base
• Low-moderate capital needs
Context
• Retiring business owner, or
serial entrepreneur ready for next challenge
• Previous owner available to stay on board for a period of time