|
|
 Milestone targets investments in proven, successful private companies with superior management teams, stable cash flow and significant growth potential, including organic and growth through industry consolidation. Desirable business characteristics include:
Profitable track record - Milestone targets companies with at least a three year track record of solid operating profitability and growth, particularly preferring businesses with proven margins that are superior to those of comparable peer companies. Market leader or leadership potential - Milestone is attracted to companies that have a proprietary approach to a particular market that provides the company with a defensible, competitive position and the potential to become, or maintain its position as, a leader in that industry. These companies often benefit from competitive advantages such as proprietary business models or manufacturing processes, or sell highly regarded products or services. Recognizable growth potential - Milestone targets companies that have demonstrated attractive, sustainable growth opportunities. Superior management teams - Milestone will generally invest only behind proven management teams with a demonstrated record of success. The firm expects key managers to obtain a meaningful financial stake in the success or failure of their portfolio company. Milestone seeks entrepreneurs who are of the highest integrity, have had substantial P&L and balance sheet responsibility, accept advice and criticism willingly, have a professional demeanor in their interactions with investors, customers, partners, and advisors, and have the ability to attract additional talented executives. Milestone has developed an operating partner program from which the firm draws talented managers from a variety of industries to augment or advise and assist incumbent management teams. Clear exit strategy - A thorough understanding of exit alternatives is a critical element in evaluating an investment. Investments must have multiple potential exit opportunities, which should not be industry-cycle dependent. Milestone typically builds a platform to sell to a broad array of potential buyers, including larger private equity firms and strategic corporate buyers in similar or related industries. Undesirable business characteristics include:
|