Crossroads Capital
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Crossroads Capital
  • Home
  • Investment Approach
  • Our Team
  • Advisory Services
  • Contact Us

Market Opportunity

Crossroads targets investments in the lower middle market segment with a focus on businesses considered Platforms in the Business and Professional Services and/or Asset-Light Services sectors.  Preference is given to the Southeast Region of the United States as Crossroads’ leadership has an established, extensive network and believes there is optimal opportunity to identify well established organizations with a deep-rooted, diversified customer base.  


Criteria

Financials

Financials

Financials

  • Lendability on senior debt (current capacity at 1.0x) 
  • Annual revenues over $7.0 million
  • Annual EBITDA % over 18%
  • Cash flow positive for three years
  • Owners willing to accept deferred payment

Company

Financials

Financials

  • Qualified as Platform Company
  • Private and concentrated ownership
  • Low customer concentration OR long-term contracts
  • Owners unable to re-enter market
  • Management team considered to be industry leaders in their respective field(s)
  • Located within the Southeastern Region of the U.S.



Industry

Financials

Industry

  • TAM > $500 Million 
  • High organic growth potential
  • Large, fragmented market
  • Low risk of technological obsolescence
  • Moderate barriers to entry

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