Investment Philosophy
E&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 flexible by design. Our ownership stake and level of involvement are always tailored to the business.”
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
In addition to seeking majority control of businesses with the above characteristics, E&A is always interested in exploring opportunities to participate in minority or LP positions with capable and trustworthy partners.
Investment Criteria
Since 1977, we’ve invested in — and in many cases, operated — a diverse range of companies. Our track record spans majority acquisitions, minority interests, and passive positions.
It’s our view that the right structure depends on the business, not a predetermined playbook. Patient capital is at the center of everything we do.