Devana Partners is seeking companies that have many of the following characteristics:

Financial Criteria

• Revenues of $5 million to $50 million
• EBIT of $1 million to $5 million
• Producing positive free cash flow

Geographic Area

• Based in the United States

Business Characteristics

• Provide differentiated business services or light-manufactured products
• Operate within a large, fragmented market
• Face low risk of technology change, regulatory change or obsolescence
• Possess stable customer relationships with recurring revenue opportunities
• Have solid existing mid-level managers already in place
• Have concentrated ownership with a motivation to sell
  

Industries of Interest

• Business services, especially to professional services groups
• Healthcare-related (non-patient facing)
• Pet-related (non-retail)
• Light manufacturing
• No interest in real estate, retail or turnarounds
  

Despite the above, Devana Partners will investigate transactions that fall outside these guidelines if they are sufficiently attractive.

Devana Partners is unlike many private equity or venture capital funds in that:

We are not building a portfolio. We intend to acquire and focus on a single, quality company, and we will put 100% of our efforts behind that investment.

We will actively manage our investment. Devana Partners’ managing director will take an operating role in the company, making us an attractive option for owner/operators seeking an exit.

We are experienced operators and investors. Devana Partners’ investors and managing director are seasoned entrepreneurs, operators and financiers with many years’ experience running and building high-growth companies.

We are long-term investors. We seek to create long-term growth opportunities, with no interest in a short-term “strip-and-flip” strategy.

We are interested in solid, “micro-cap” businesses. We are focused on acquiring a company that is too small for most private equity firms, and too mature for venture capital funds.

We are not fad-driven. We are not interested in the latest business flavor of the year. We like businesses with good prospects, excellent customer relationships and happy, capable employees who want to grow with their company.

We can move quickly. While we have access to sizeable capital for a transaction, we are also a compact, nimble organization.