There’s no such thing as a perfect investment; however, there are some fundamentals we at Elvisridge Capital look for when evaluating investment opportunities.
Here are a few of the questions we ask ourselves.
Does this business fit within our portfolio?
Our firm seeks, primarily, business opportunities within the landscape product and sportfishing industries. That’s not to say we won’t look at other opportunities, but business owners who approach us with a unique competitive advantage in either of these industries are in a good position to attract our attention.
Is this business the right size for us?
The investments we’re most interested in fall within a range of $200,000 to $3 million. From our perspective, some of these are companies too small to attract the attention they may deserve from large investment firms.
Is there a winning management team in place? And do those team members wish to stay in place or hold an equity position?
We place an emphasis on employee and manager retention. Often, the companies we acquire have key operators who desire equity participation. We believe the combination of our operating experience and the commitment of those already in the business are two of the most important factors to achieving a return on investment for everyone involved.
Can we add value to this business?
Many middle- to late-stage businesses have reached a plateau that can only be crossed with an injection of new processes, new relationships, or different ways of thinking. Our operating experience and vast network allows us to quickly decide whether we can add value to a business beyond our initial investment. If we offer to take an equity position in a business, sellers can be confident we believe our operating experience, resources and knowhow are a fit — and that we can help a particular business grow.
Is this a great long-term investment?
Finally, we can’t say that we’ll never sell a business. But we can say that we invest for the long run. We’re not the type of investors looking to polish-up and flip a business; rather, we seek to help the companies we acquire build long-term value and solidify their unique positions in the markets they serve.
Elvisridge Capital seeks established, privately held, middle- to late-stage businesses based in the United States. We invest in situations where our experience and resources can help generate significant profitability improvement and revenue growth. To begin a conversation, contact us at email@example.com.