Overview 2017-02-11T14:34:57+00:00
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Objectives     |     Acquisition Criteria     |   Approach   |     Why Decisive
 

Objectives

  1. To acquire established manufacturing companies with strong predictable cash flow.
  2. To provide our shareholders with stable and growing monthly dividends.

Acquisition Criteria

We look for opportunities to acquire private companies that fit the following criteria:

  • An established operating history.
  • Capable and experienced senior management.
  • Competitive advantage.
  • Growth potential in both revenue and earnings.
  • Sustainable EBITDA in the $2 million to $6 million range
  • Operations based in North America.
  • No early stage, cyclical, technology or hospitality.

We have a preference for manufacturing and processing businesses.

Approach

Our buy/build/hold approach includes the following:

  • Long term ownership – we do not buy a company with the intention of selling it.
  • Investment of time, money and expertise into the business.
  • Partner with existing management to grow the business.
  • Autonomy for management – we prefer to not be involved in the day to day operations.
  • Vendors and key management have an equity interest.
  • Opportunity for employees to participate in equity ownership (ESPP).
  • Disciplined purchase price based on a multiple of sustainable EBITDA.
  • Comprehensive due diligence to satisfy our criteria for a successful investment.

Once a company is acquired, we look to build a strong partnership in the following ways:

  • Strategic planning;
  • Access to resources and talent;
  • Assist with major capital allocation decisions;
  • Invest in growth opportunities; and
  • Oversight through financial reports and business plans.

Why Decisive

Vendors

  • Business legacy continues.
  • Management remains in control of the day to day operations.
  • Additional capital to grow the business.
  • Access to advisory group with significant operational, marketing, financing, legal and international experience.
  • Succession planning, opportunity to cash out and participate in Decisive growth.
  • Stability of long term ownership.

Employees

  • Business as usual.
  • Stability of long term ownership.
  • Opportunity for equity ownership (Employee Share Purchase Plan).

Investors

  • Growing portfolio of established companies.
  • Stable and growing monthly dividends.
  • Conservative payout ratio.
  • Capital gains opportunity.