Peninsula Capital Partners seeks to invest in companies that are strong performers within their industry and that have superior management. Some specific attributes we look for are:
Management Ability and Motivation. We believe capable management is a company’s most important asset. Therefore, we require that management has a strong track record and has adequate financial incentives.
Historical Performance. A demonstrated record of successful operations is essential; however, we will consider “storied” situations in which non-recurring events have negatively affected past performance, or in which recent developments position the company for improved future performance.
Defensible Market Position. A company should have a well-defined market niche and the ability to defend its position through superior product/service attributes, distribution channels, customer relationships and/or cost structure.
Coherent Business Plan. Management’s business plan should be comprehensive and identify the resources required to enact it.
Critical Revenue and Earnings Mass. A company must be mature enough to have proven the viability of its business concept both in terms of longevity and revenues/earnings. In most situations this means at least five years of operations and $2.0 million of earnings before interest, taxes and depreciation (EBITDA).
Industry Outlook. The industry in which a company operates should have positive fundamentals and not be overly prone to volatile cyclical swings, exogenous shocks or excessive regulatory oversight.