Investment Criteria

Cambria seeks investment and acquisition opportunities which generally meet the following criteria:

Size

  • Cambria equity of up to $5.0 million.
  • Transaction value of up to $25 million.
  • Larger equity requirements and transactions can be accommodated with like-minded co-investors.

Industry

  • Manufacturing, processing, distribution, transportation, resource or service businesses — excluding situations in retail, technology and healthcare.
  • Stable or growing markets with limited cyclicality.
  • Minimal risk of technological change.
  • Minimal regulatory exposure.

Financial

  • Reasonable purchase price.
  • Ability to support prudent leverage, whether financed on a cash flow or asset basis.
  • Minimum annual historical operating earnings (EBIT) of $1 million for new investments.

Investment Horizon

  • Tailored to corporate strategy, but generally holding periods will vary from three to ten years.
  • Willing to hold and build positions in attractive companies indefinitely.

Structure

  • Equity or quasi-equity securities.
  • Control or shared control positions.
  • Use of proceeds may be for acquisition of an equity stake; debt recapitalization; or acquisitions, capital expenditures or working capital needs.

Business Considerations

  • Sustainable competitive position in a stable or growing market niche.
  • Fundamentally sound operating businesses with a multi-year history of profitability.
  • No startups or substantial turnarounds.

Management

  • Desire of current management to remain — particularly in key functional roles — is preferred but not required.
  • Willingness of key executives to make personally significant investments.