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Investment Criteria

Cambridge Capital’s investment criteria include the following:

Target company operating characteristics:

  • Outstanding management – we seek to partner with top-notch teams, working together to create continued value.
  • Category leadership – we invest in companies that are category leaders in their chosen fields, either in the supply chain or the applied supply chain. 
  • Competitive advantage – driven by differentiated product or service
  • Asset-light – minimal need to fund capital expenditures
  • Cash-flow-positive –  with potential for strong free cash flow
  • Recurring revenues – strong foundation for continued growth
  • Opportunities to create network effects – via national expansion, network density, and ability to cross-sell additional services

 

Size:

  • Meaningful scale – typically $20–$200 million of revenue
  • Equity Investment of $5–$50 million
  • EBITDA of $2 to $20 million

 

Investment profile:

  • Growth capital for outstanding management teams
  • Leveraged buyouts of corporate, family or financial investor owners
  • Recapitalizations giving existing investors a liquidity event
  • Build-up strategies