Investment Philosophy

icon-philosophyE&A’s strategy is to build on the inherent strengths of a company’s people and its products by investing in the brand and pursuing new opportunities in order to maximize long-term value.

We understand that the best opportunities often require nontraditional thinking.  Therefore, we search for potential in areas that fall outside the mainstream and try to discover value that others may overlook.

We’re hands-on. That means we work alongside the owners of the companies we invest in.

Investment Criteria

icon-criteriaWe have a proven record of taking small entrepreneurial companies to the next level. Since 1977, we’ve purchased (or taken a significant interest in), run and sold a dozen companies, which illustrates our patient approach.

 

General Criteria

  • Industry agnostic
  • No start-ups
  • High-quality, value-added products or services
  • Proprietary or unique product line, technology, methodology, etc.
  • Unrealized growth potential
  • Branded product line
  • Niche or specialty market
  • Recurring or repeat sales

Consumer Packaged Goods Business

  • Compounded annual growth rate greater than 10%
  • Target Revenue: Revenue run rate in excess of $1 million in sales
  • 35% or greater fully burdened gross profit margins
  • Target EBITDA: Flexible target

Growth Business

  • Compounded annual growth rate greater than 10% for the past 2-3 years
  • Target Revenue: $2-20 million
  • 35% or greater fully burdened gross profit margins
  • Target EBITDA: $500,000 to $5 million

Cash Flow Business

  • Compounded annual growth rate less than 10% for the past 2-3 years
  • Target Revenue: $3-20 million
  • 30% or greater fully burdened gross profit margins
  • Target EBITDA: $500,000 to $3 million