WestBay Capital’s IDEAL company includes:
- Growth is slow and steady.
- Revenue is recurring and not concentrated in a few customers.
- Resistant to recession. Ideally, inelastic demand.
- Under the radar – product/service is an important but non-critical input.
- Reputation is excellent – among the top 3 competitors.
- Owner can be made non critical – we avoid personal services.
- Something that differentiates the company from the competition.
The metrics we look for :
- Adjusted EBITDA: $500,000 to $2,000,000; larger is acceptable if management team in place.
- Net Income>10% of Revenue.
- 5 years of stable, positive earnings (adjusted).
- Steady capital expenditure history.
- 5 years of stable, positive cash flow.
WestBay Capital 