We have flexibility in the types of deals we choose to pursue, how we structure transactions, and how long we hold our investments. We seek to negotiate fair transactions and we don’t lose sight of the fact that the seller and management will often be our partner after the deal closes.  While remaining flexible the following characteristics are preferred:

Operating History – Prospect companies should have a minimum of three years of profitable operating history. We do not invest in startup or seed stage ventures.
Growth Potential – Prospect companies should have achievable growth opportunities through internal measures or strategic acquisitions.
Size & Profitability – Prospect companies should have annual revenue of more than $10 million and EBITDA exceeding $1.5 million.
Industry Characteristics – Companies operating in stable industries, ones that can benefit from marketing talent or real estate development are favored.

Exceptions to these criteria may be made for businesses having unusually high operating margins, stable cash flows, a dominant market share in a niche market, or other compelling attributes.  If in doubt as to whether a company might be a fit for Gordon Equities, please contact us and we’ll talk though it.