Investment Criteria

There are certain qualities each business must have in order to make it suitable for acquisition as part of our strategy:
Significant Expense Reduction Potential through Economies of Scale
Companies in target industries must possess the potential for strategic economies of scale through increased purchasing power, reduction of overhead through shared corporate structuring and operational improvements through network optimization and best practice management. In many cases, this will necessitate that the related companies are strategically collocated. Investments are made with the objective of growing a company's EBITDA by at least 20% over a three-year period.
Non-Niche Markets Unaffected by Volatile Trends
Our target markets are sizable, well-established and either stable or growing. While we expect our portfolio companies to be strong players in their respective markets, we will not invest with companies whose business strategy involves capturing market share by creating a new market or by actively expanding the size of a stagnating market.
Qualified, Experienced Management
We invest only in companies whose management teams possess in-depth knowledge of and experience in their specialized industries and who have extensive business and entrepreneurial experience. In addition, the leadership team must demonstrate a comprehensive understanding of their competitors and the ability to respond aggressively to a changing competitive landscape. This rule may be discounted if the company in question has been identified as a company that can be fully-absorbed into other companies in the group.
Well-Defined and Defensible Exit Strategies
Within each industry, we define a strategic exit plan to optimize the return on invested equity. Each acquisition includes a clearly-articulated exit strategy, along with an operational strategy that specifies the steps that will be taken to achieve a successful exit.
Our Ability to Contribute
We invest only in those industries and technologies that would benefit directly from Brookwood's knowledge, experience and extensive network of leaders and experts. We bring to the table more than just financing. While we might not participate directly in the day-to-day operations of a specific portfolio company, we are not passive investors and will contribute actively, when appropriate, to the growth of our investments.