Investment Criteria

Investment Criteria

Investment Criteria

Littlebanc has historically seen an active funnel of potential investments. We don't anticipate ever participating in an auction for an opportunity.

View our sourcing and investment statistics, since our inception in mid 2010, below.

  • ◉ Potential investments put forward for our review: Thousands
  • ◉ Actual companies that made it to the next level of evaluation / due diligence: Hundreds
  • ◉ Number of companies we have invested in: 9

Keep in mind that some opportunities can be evaluated in 15 minutes while others we are still tracking and monitoring for several years. This is a full contact sport. We keep in touch with the opportunities that we think are most promising, which may only lack one or a few key elements for us to make an investment. The key elements are usually, but not exclusively related to, valuation structure control. One other key element is our confidence in the management's ability to execute the plan.

We invest our own money. Our limited partners are investing on the exact same terms as us.

High-level investment criteria

TRANSACTION TYPE
TRANSACTION SIZE
MANAGEMENT
GEOGRAPHY
PREFERRED INDUSTRIES
Transaction type
  • ◉ Growth companies with a minimum of $3 million in trailing revenue and break-even profitability.
  • ◉ Established, high cash flow businesses seeking to restructure, sell or invest in growth.
  • ◉ Acquisition roll-up strategies in businesses that will benefit from economies of scale.
  • ◉ We like to see a high probability of 3-5 times return on our investment in a 3-5 year period.
  • ◉ We only invest in preferred equity and convertible debt instruments, and seek to have seniority and liquidation preference.
  • ◉ We always require a board seat as well as certain customary consent and veto rights that are commonly associated with investments of this nature.
  • ◉ We look for situations we can add value, accelerate growth, and increase profitability.
Transaction Size
  • ◉ Minimum equity investment of $3 million.
  • ◉ Minimum enterprise value of $12 million.
  • ◉ Minimum EBITDA of $1 million
Management

Seasoned, dedicated management team with a proven history of past success.

Geography

Companies must be based in the United States.

Preferred Industry
  • ◉ Business services
  • ◉ Healthcare
  • ◉ Deathcare
  • ◉ E-commerce
  • ◉ Financial services
  • ◉ Information technology
  • ◉ Manufacturing
  • ◉ Firearms and Defense
  • ◉ Payment processing
  • ◉ Social applications and technology

If you're interested in working with Littlebanc as an investor or entrepreneur, please feel free to contact us to speak with one of our managing directors.

Contact Us