WHAT WE LOOK FOR.

We offer fair and flexible terms, with a customized structure for each situation.

OVERVIEW

For companies that meet our criteria, Russell Square can customize a transaction that meets the needs of all stakeholders. We are interested in buyouts, recapitalizations, and growth capital investments. We can also help facilitate generational transitions and succession plans. We are collaborative partners, comfortable with both majority and minority positions.

INVESTMENT CRITERIA

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Company Characteristics:

Stable revenue base with recurring characteristics
Diverse customer base
Strong and defensible market position
Favourable growth prospects

Industry Attributes:

Stable or growing market
Barriers to entry
Fragmented competitors with opportunity for add-on acquisitions
Low regulatory and technological risk

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Financial Criteria:

Revenue of at least $5 million
EBITDA or operating profit of at least $1 million
Low capital intensity

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Management Orientation:

Thorough understanding of key business drivers
Realistic conception of the company’s strengths and weaknesses
Desire to work collaboratively and operate with openness and integrity
Willingness to maintain/take a material ownership stake in the business

INVESTMENT STRUCTURES

Buyouts: Through a highly collaborative process, we are able to develop thoughtful and successful exit strategies for business owners. Our flexible approach allows us to partner with existing management teams or to engage new management if needed. We are particularly interested in owner-operated businesses, inter-generational transitions, and management-led buyouts.

Recapitalizations: Russell Square provides liquidity for entrepreneurs and shareholders looking to sell a stake in their businesses, while allowing them to either retain operational control or work with us to bring in a new management team. This allows owners of family-owned or privately-held businesses to diversify their holdings and achieve partial liquidity while bringing on a supportive and thoughtful partner.

Growth Capital: Growth equity allows businesses to expand more rapidly or to take advantage of opportunities that require immediate capital. Russell Square brings our business building experience and financial capital to bear to make significant investments that accelerate growth.

Corporate Carve-Outs: When a large corporation wants to sell a non-core business, Russell Square will work with corporate to facilitate the successful divestiture of the business unit and the acquisition of the operations by the management team.