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Investment Criteria

 

Auxo Management is actively looking to acquire a controlling interest in a privately held company with an owner seeking liquidity. We are focused on opportunities within 100 kilometers of a major city in Canada or the U.S.

 

Businesses should meet the following criteria:

 

 

Business Criteria

  • Positive and stable cash flows
  • Strong EBITDA margins
  • Asset and working capital light
  • High growth potential
  • Sustainable competitive advantage

Industry Criteria

  • Growing and sizable market
  • Recurring revenue
  • Not overly complex
  • Barriers to entry
  • Stable industry with low technological risk

Situation

  • Owner seeking to reduce daily operating role or exit without a successor in place
  • Owner of high growth business seeking to diversify personal net worth, add day-to-day management capabilities and an experienced board of directors

Financial Criteria

  • $10 - $50 million of annual revenue
  • $2 – $8 million of annual cash flows
  • Operating margins over 10%
  • 3+ years of continuous historical profitability
 


 


 

Conversely, Auxo will not invest in:

 

Businesses with the following characteristics:

  • High customer churn
  • Less than $10 million of revenues or $1 million EBITDA
  • Competitive auction

Or industries with the following characteristics:

  • Cyclical, seasonal or unstable cash flows
  • Rapidly changing trends, innovation, or fads
  • High technology risk
  • Environmental liabilities
  • High requirements for capital expenditures and/or working capital

 

Auxo will pay competitive referral fees on a deal-by-deal basis. Please contact us if you have an opportunity you believe fits our criteria.