Investment Criteria

Representative Seller Narratives


One Iron seeks out companies that fit within the following broad criteria:

            (1) Business is at an "inflection point"
                - Owner seeking to retire, exit business 
                - Uncertainty around how to grow
                - Depressed margins relative to industry
                - Company in need of additional structure to capture growth opportunities (e.g. ERP, financial reporting, sales force, management, etc.)
                - Owner in need of liquidity or wishing to diversify personal net worth

            (2) Opportunities or challenges facing the company are addressed through strong execution of business fundamentals

Company

  • Recurring revenue with minimum three-year history of profitable growth
  • Established competitive position
  • Diverse customer base
  • Labor is critical component to your success

Financial

  • Adjusted EBITDA up to $3 million
  • Minimum operating margins (EBITDA) of at least 15%
  • History of stable performance (No 'run-ups' or non-business cycle volatility)
  • Limited capital expenditures and working capital requirements

Industry

  • Fragmented niche industries
  • People are critical to value creation
  • No 'bleeding edge' technology
  • Representative industries include:
    • Service companies (Healthcare, Technology, Financial, Residential, others)
    • Light manufacturing
    • Construction
    • Food & Beverage
Printable version of Investment Criteria