Investment Focus

Black Mountain Equity seeks investment and acquisition opportunities that generally meet the following criteria:

Industry / Sector

• Sizable with significant growth (>5% per annum)
• Fragmentation among market participants
• Strong industry profit margins
• Low-to-moderate capital intensity
• Limited seasonality / cyclicality
• Low-to-medium technology risk
• Minimal regulatory risk

Company

• Strong reputation and values
• 3+ years of continuous profitability
• Leadership / advantaged position among competitors
• Recurring revenue and / or low client acquisition costs
• Low customer concentration

Management / Existing Ownership

• Yearning to exit the business or focus / specialize on a particular aspect of operations (e.g., sales, geography)
• Desire / ability to partner with BME principals during transition period (or longer as applicable)
• Experienced, driven middle-management
• Strong, positive employee relations

Financial

• Transaction values up to $75 million
• Revenues between $5-$75 million
• EBITDA between $1-$15 million
• Healthy EBITDA margins (>20%)
• Strong balance sheet with low debt