Investment Criteria

EBSCO Capital is responsible for the investment and acquisition activities of EBSCO Industries. We are primarily focused on new platform opportunities and add-on acquisitions, but are also committed to venture and fund opportunities that align with our goals.

The below criteria speaks to our preferences within each investment category.

PREFERENCES

Platforms Add-ons Direct Venture Funds
Thematic Alignment Strong Preference Preferred Required Required
Size $5-20M EBITDA No minimum No minimum No minimum
Profitability >10% EBITDA Margin >10% EBITDA Margin • Not pre-revenue
• Rule of 40 preference
Track record of high return on invested capital
Other • Sustainable and clear economic moat
• Diversified customer base
• Growth equity
• Venture
Management Proven and committed management team Proven and experienced fund managers

THEMATIC INTERESTS

Active Themes Overview Illustrative Holdings
Mission Critcal, B2B SaaS Software that is critical to the operation of a business with teams that are culture focused and customer obsessed. Open to a wide range of industries. Looking for a $5-10M ARR, +10% annual growth.
Information Products & Services Products and services for libraries (and their patrons) and researchers that aggregate, organize, and deliver research databases, journals, e-books, software, and other information.
Healthcare Technology Tech-driven clinical decisions support solutions and point of care diagnostic tools that leverage data or content to help drive better decision-making.
Need-it-Now, Value Add Distribution These companies sit in the middle of product manufacturers and product end users, and consistently provide difficult-to-source, but critical, products/components with short lead times.
Enduring Businesses Businesses with strong management teams, sustainable economic moats, and a growing industry focus.

Constantly Seeking Platforms

Constantly Seeking Platforms

 

In addition to the themes noted above, EBSCO Capital is actively developing and validating thematic perspectives in several other areas including but not limited to RIA/wealth management, single family housing, dealerships, cyber security, fintech, eSports and gaming, smart cities, building monitoring systems, specialty risk underwriting, and marketing tech.