CRITERIA

OVERVIEW

The Axline Group is currently directing 100% of its attention to its newest fund, Hidden Peak Capital.

Hidden Peak Capital

Through Hidden Peak Capital, we make controlling investments in service or light-manufacturing companies with revenues up to $25 MM and EBITDA margins greater than 10%. Although we favor situations where owners are considering retirement or taking a significantly reduced role in the day-to-day operations, we will also consider corporate divestitures. We will not make investments predicated on turn-around attempts.

PRIMARY INDUSTRIES OF FOCUS

Partly calling upon our deep managerial expertise in technology and partly relying on our highly analytical view of the market as a whole, we take a blended approach when selecting industries in which to invest.

The following industries are our priority:

  • IT Service Providers
  • Property Management
  • Janitorial Services
  • Medical Supplies Wholesaling

    • CHARACTERISTICS OF TARGET INVESTMENTS

    We generally seek investments which meet a majority of the following criteria, understanding that special situations may warrant exceptions:

    Business Criteria
  • Privately held, U.S. based
  • Multiple avenues for growth
  • Sustainable competitive advantage

    • Industry Criteria
  • Growth Stage
  • Highly Fragmented
  • Straightforward operations

    • Situation
  • Owner is retiring without a successor in place
  • Owner seeking to reduce daily operating role
  • Corporate divestitures

    • Financial Criteria
  • Three year history of profitability
  • $2.5 MM to $25 MM in revenue
  • Minimum EBITDA margin of 10%
  • Minimum EBITDA of $1 MM

    • INVESTMENT STRUCTURES

    The Axline Group typically looks to make controlling investments in buyout and recapitalization transactions. Our financing philosophy is to utilize modest leverage, preferring to generate attractive returns through earnings growth and expanding the valuation multiple through building larger, more valuable enterprises with improved operations.