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"Small" Companies, as described herein;
Domestic companies located within a 500 mile radius of New York City;
Generally, in basic, well-established industries;
A minimum 10-year operating history;
A strong asset base, with an asset-to-debt ratio of 3:1;
An owner who is preparing to retire, but who is available for a transition;
Non-union employees (except electrical and plumbing);
A market niche that makes the Company unique or gives it a proprietary advantage;
A purchase price (excluding real estate) in the general range of 3x earnings (based on a 3 year weighted average);
An acquisitions structure that generally consists of approximately 1/3 of the purchase price in the form of equity; 1/3 of the purchase price in the form of debt and 1/3 of the purchase price in the form of Seller financing;
Real estate is included in a separate related transaction;
A combined EBITDA goal of approximately $10,000,000 per year, achieved as follows:
One portfolio company with EBITDA in the range of $1,000,000+ per year;
One portfolio company with EBITDA in the range of $3,000,000+ per year;
One portfolio company with EBITDA in the range of $5,000,000 + per year;
A performance analysis prior to the acquisition to be completed by the General Partner for each targeted portfolio company on an independent "stand alone" basis to project retursn to the Limited Partner investors in the range of not less than 20% (IRR) and a multiple of capital invested of not less than 2.5x based upon conservative management expectations (generally conssiting of 3 years' historical performance adjusted and carried forward);
A policy of paying off acquisition debt, so as to create a portfolio of companies that are essentiall debt-free (excluding trade payables);
A combined enterprise value goal in the range of $50,000,000;
A 5 to 7 year investment term;
Exit consisting of the sale, liquidation or buyout of the Limited Partners interest at Fair Market Value at the end of the Commitment Period.
Limited Partners shall vote "yes" or "no" for any Partnership acquisition, with a Majority in Interest prevailing.
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