Ideal Acquisition Candidate
The following brief profile characterizes an ideal acquisition candidate.
Company
- A manufacturing, distribution, service, or technology concern
- Established at least five years
- Privately owned
- Not a start-up operation
Financial
- Sales of $5.0 million to $50.0 million
- Consistent profitability for the past three years
- Expectation of stable, positive cash flow
- High quality balance sheet with little or no debt
- Disclosed expectation of purchase price
Industry
- Medical device, life sciences or biotech products
- Secure market position within a niche
- Not dominated by a larger competitor
- Fragmented industry with other acquisition candidates
- Attractive, long-term demographics
Products
- Long product life cycles
- Minimal cyclicality and seasonality
- Significant value-added to the consumer
- Consumer or clinical medical products, diagnostics, medical devices, suppliers to the medtech, pharmaceutical, or biotech industries
- Defensible market position, based on technology leadership, patent protection, or established brand position and customer relationships
Management
- Key management willing to remain for a transition period of at least two years
- Management strength in most functional areas
- Stable employee relations
- Non-union
Customers
- Diverse customer base with no single customer accounting for more than 25% of revenues
- High-quality, financially secure customers
- Established, growing base of end-users
- Minimal uncertainty regarding reimbursement
Operations
- Light manufacturing, assembly, fabrication and /or molding
- Value-added distribution
- Modest excess capacity
Geography
- Located in the United States