Investment Philosophy
Cadence Capital Partners invests in profitable service businesses with potential for long-term growth and annual revenues ranging from $5 to $50 million. We consider a broad spectrum of investment opportunities and industries throughout the United States.
We prefer investments that satisfy most of the criteria listed below.
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| Company | Financial | Industry | Context | |||
|---|---|---|---|---|---|---|
Recurring revenue business model with durable competitive advantages
Minimum three-year history of profitable growth
Loyal and diverse customer base with high retention rates
Strong middle management team and culture of quality and teamwork
Readily identifiable growth opportunities |
Revenues ranging from $5 to $50 million
Stable and recurring cash flows of at least $1 million
Minimum operating margins (EBIT) of at least 15%
Limited capital expenditure and working capital requirements |
Fragmented niche industries
Growing markets
Low external risk factors
Low cyclicality
Representative industries include:
Cadence Capital does not invest in turnarounds or start-ups |
Owner/operator seeking to retire without pre-identified successor
Company in need of additional management and board expertise to capture long-term growth opportunities
Owner/operator in need of liquidity and wishing to diversify personal net worth
Generational and management transitions |