McIntosh Partners makes controlling investments in Canadian small and medium sized businesses, with a preference for companies headquartered in Western Canada.
We’re looking for companies with the following criteria:
- $5 million to $50 million in revenue
- Stable annual cash flow
- Low capex requirements
- 15%+ EBITDA margin
- Recurring or repeatable revenue, preferably with long-term contracts
- Solid employee relations with high retention rates
- Not subject to regulatory risk
- Strong competitive position
We are generalist investors with a preference for the following sectors:
Outsourcing of business services continues to trend upward as technological development enables small businesses to deliver low-cost, enterprise quality products and services. These companies are typically characterized by long-term contracts, with repeatable or recurring revenue, and are not capital intensive.
Healthcare and Education
Demographic shifts, the exponential pace of technological advancement and rapidly changing skill requirements for the workforce will continue to challenge the delivery of healthcare and education. Governments are partnering with the private sector to continue to deliver superior choice and quality as public budgets are coming under increased pressure.
Industrial and Related Services
We look for traditional industrial, value-add and associated service businesses, as well as enterprise software businesses related to Industry 4.0. These companies have potential for significant growth through massive volumes of data coming from the digitization of connected physical assets. This will dramatically alter services in manufacturing, energy, mining, agriculture, utilities, transportation and logistics, and other industrial sectors of the economy which, together, account for nearly two-thirds of the global GDP.
Cloud technology, connected devices and the availability of data continues to change how businesses function. We look for pure software-as-a-service (“SaaS”) opportunities or technology enabled businesses that leverage proprietary software. These businesses are characterized by low asset intensity, recurring or repeatable revenue and are highly scalable.