Investment Criteria

River Associates seeks to partner with management teams in companies where opportunities exist to maintain and enhance profitability internally as well as through acquisitions. Our general acquisition criteria are as follows:

• Niche manufacturing, high margin distribution or industrial service companies as well as select retail businesses which are not faddish in nature
• Companies based in the United States and Canada
• Operations in industries where growth is possible due to market or market share expansion and/or through acquisitions of complimentary companies or product lines
• Strong and committed management team with top one or more executives (incumbent or new) willing to co-invest alongside River Associates
• Platform company financial parameters:
• Sales : Greater than $10 million
• EBITDA : $2 - 10 million (Adjusted for nonrecurring expenses)

Margins which exhibit internal pricing strength. For example, gross margins of at least 20% are preferred.

• River Associates will partner with other funded and fundless private equity groups in situations which meet our general criteria.
• River Associates will generally avoid investments into heavily regulated industries as well as start-up, high-technology, commodity or natural resource companies.
• Strategic add-on acquisitions of any size will be considered.