I'm often asked: "What is attractive to you as a buyer?" Some thoughts:
· History of earnings growth
· Potential for continued earnings growth (notwithstanding this, we do find distressed companies to be, in certain circumstances, attractive acquisition candidates).
· History of reinvestment in the business rather than stripping out all earnings (i.e., capex has not been delayed).
· Good customer base and potential to grow sales at each
· Strong management team
· Good employees
· Reputation in the marketplace
Again, in the current economy, we have been and will continue to make acquisitions of distressed companies so it is important for owners to realize that we might have an interest in their business even if some of the above criteria aren’t satisfied.