Riverside's Investment Criteria
It takes a disciplined investment strategy to generate the results for which Riverside has become known. Experience and due diligence are vital. We have initiated, negotiated, financed, closed and managed dozens of investments in a wide range of industries
Over time, Riverside has developed a set of criteria that has served us well in guiding our investment decisions. When we consider a company for acquisition, we generally measure it against these criteria:
• Niche leaders with significant and defensible market share
• Growth opportunities (organic, buy & build)
• Diversified customer base
• Enterprise Value between €15 and €150 million
• Operating profit of at least €2 million
• Operating profit margin exceeding 10%
• Three years of profitable history
• Management team willing to co-invest
Riverside has invested in numerous family- and entrepreneur-owned businesses as well as many corporate spin offs. We have a clear understanding of the needs of families and entrepreneurs who are contemplating selling all or part of their life's work (and often more than one generation's work). Riverside has worked with sellers in the past to help handle succession issues and to structure transactions in ways that the family will benefit the most.
With corporate sellers, we are well aware of the stand alone requirements of business units post acquisition and the need for speed in the divestiture process. Riverside, in its history, has purchased 19 corporate spin-offs and welcomes the opportunity to work with existing management of the division being sold.