Investment Criteria

Leading Ridge exclusively seeks controlling equity positions in lower-middle market businesses that meet our proprietary evaluation criteria. We are disciplined in our approach to investing and will not engage in auction-style bidding processes.

The Leading Ridge team seeks to bring growth capital, best practices, business development expertise and financial scale to a company with existing management, established distribution channels, supplier relationships and a defensible market position. Our primary focus is on distribution and manufacturing companies in the Mid-Atlantic region, but we are open to a variety of industries nationwide that possess many of the following characteristics:

Platform

• EBITDA of $1-$5 million with stable revenue and above industry-average margins; element of recurring revenue preferred
• Basic industry (no high-tech) with barriers to entry created by niche market segments, differentiated products, well-defined distribution channels, a captive customer base, or complimentary service offerings
• Industry preferences include, but are not limited to, value-added distribution, niche manufacturing & assembly, business services and asset-light logistics
• Existing management team and core staff, with long-term customer / supplier relationships, willing to remain and partner with Leading Ridge post-transaction
• Established (and perhaps underutilized) infrastructure including machinery / equipment, IT systems and adequate financial reporting capabilities; minimal recurring investment in capital expenditures preferred
• Growth opportunities clearly identified, but perhaps not fully executed due to market conditions, risk tolerance or lack of capital

Envisioned Scenarios

• Family business seeking a seasoned partner and investor to fund the buyout of patriarch, with second generation retaining a large non-controlling interest
• Management team seeking a seasoned partner and investor to fund a management buyout
• Investor seeks management team to be a true partner – combining management’s industry knowledge, operational expertise, and customer / supplier relationships with investor’s track record to fuel entrepreneurial growth through strategic vision, financial scale, operational experience, and cultivation of long-term relationships
• Businesses looking to partner with or sell to existing Leading Ridge portfolio companies
• Corporate divestiture