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Acquisition Criteria
RRC recognizes that selling your business is a deeply personal decision. We want to be the best stewards of your business by preserving your legacy while focusing on future growth opportunities to take the business to the next phase. Unlike traditional private equity, RRC takes a long-term approach to owning a business - focused on building and growing rather than meeting specific investment timeline objectives.
Companies in our investment lens are privately-held or family owned business seeking an ownership transition The general investment criteria of target companies are the following:
• Companies that operate in fragmented industries
• Recurring / High Visibility Revenue
• Stable Profitability / Cash Flow
• $ 500K - 1.5 Million in EBITDA
• ~ 10% or greater EBITDA margins
• Strong personnel / leadership members supporting the current ownership
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Investment Process
Step One - Initial Meeting:
RRC believes in the importance of the personal touch. The first step is to build common ground between RRC and the Ownership. Because this is an extremely important decision, the Ownership should feel comfortable about engaging with RRC.
We will seek to understand the goals and objectives behind the sale of the business while gaining a high-level understanding of the business.
Step Two - Engagement:
With an initial understanding of a potential fit, RRC will engage in a Confidentiality Agreement to secure the private information of your company. By sharing information, RRC can assess the potential fit to make a determination of next steps. If RRC is interested in pursuing the purchase of the business, we will provide a Letter of Intent for consideration. It is important to note that RRC will always be transparent with the Ownership so there are no surprises through the discussions.
Step Three - Diligence and Close:
When the Letter of Intent is signed, RRC will conduct full due diligence on the business. When diligence has been completed and legal agreements are set, RRC will work to close as quickly as possible.