Finding the Right Fit for Success
Company Criteria
Revenues
Annual revenues ranging from $5 million to $100 million
Profitability
Adjusted operating profit ranging from $1 million to $10 million and EBIT margins of at least 10%
Capital Requirements
Prefer non-seasonal companies without excessive working capital needs relative to sales, as well as low-to-moderate annual capital expenditure requirements
Management
Partner with experienced management who will oversee day-to-day operation
Industry
Mature, non-cyclical, preferably fragmented with few dominant market leaders
Customer Concentration
Generally prefer companies where top customer does not account for more than 30% of revenues
Growth Potential
Business should have capacity for growth
Transaction Situations
To date, Cornerstone has acquired 11 divisions of large / public corporations. We are therefore very experienced in working closely with the various personnel within a corporation to effect a smooth and efficient transaction. We structure Transition Service Agreements with the intention of minimizing the time period and required support needed while we extricate the business from its former corporate parent.
We believe the heart and soul of our nation's economy is its entrepreneurial spirit and those business leaders who start and run their own companies. Cornerstone values the legacy and success of those businesses, and we seek out acquisition opportunities of such companies where we can carry on the momentum of a private owner while minimizing change and disruption.
Often a change of business ownership begins with an executive or management team that desires to acquire and operate a business. Cornerstone looks to partner with experienced management in these types of situations to provide both capital and overall support to reach a successful purchase and post-closing transition.
When the timeframes and goals of multiple shareholders don't align, Cornerstone can work with existing shareholders to purchase ownership from departing shareholders and allow for general management/ownership continuity.