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