INVESTMENT PHILOSOPHY
Finrock invests in growing, profitable businesses. We like companies that are benefiting from strong sector trends, have distinctive and scalable business models, and will benefit from our experience, expertise and capital. We typically commit $5to $25 million in capital to an investment. We may also consider financing smaller or larger transactions for the right opportunity.
Sector Focus
We are interested in services businesses, particularly ones that use information technology to deliver enhanced value to customers and business partners. We are generally not seeking manufacturing companies, retailers or turnaround situations. We like businesses that can differentiate themselves through specialized capabilities, customer service, proprietary content/information, or other types of intellectual property.
Investment Process
We invest significant time and resources researching attractive industry segments. As a result, we can assess quickly whether we are interested in investigating a business further. If we are interested, we are able to leverage our research and committed capital to move quickly to complete a transaction.
Our investment criteria are outlined below.
Investment Criteria
In general, the companies in which we invest have the following characteristics:
- Revenue ranging from $5 million to $25 million
- Growth potential of over 10%
- EBITDA between $1 million and $5 million
- More than 5 Years in business and at least 3 years of profitability
- Significant recurring revenues
- Located within the US
