What We Look For
Disciplined Criteria
At SPEC, our disciplined criteria serve as a roadmap for selecting businesses that align with our values, offer sustainable growth potential, and meet the needs of our long-term investment strategy. Each acquisition target is thoroughly evaluated against our carefully developed criteria to ensure it fits within SPEC’s philosophy of legacy preservation, responsible stewardship, and growth-focused investing. Our approach ensures that we acquire businesses that not only have strong fundamentals but are also positioned for resilient growth in the years ahead.
Operational Considerations:
- Established operating history, typically spanning over 20 years
- Stable, adaptable business with strong customer relationships
- Limited exposure to regulatory changes, offshoring threats, and technological disruptions
- Alignment with SPEC values, including strong reputation, ethical business practices, and commitment to stakeholders
- Commitment to cultivating a culture aligned with responsible stewardship and employee centered growth
- Competitive advantages that shield the business from new entrants. Barriers to entry may include specialized knowledge, proprietary processes, long-standing customer relationships, regulatory licenses, or brand loyalty.
- While SPEC is able to transition leadership roles over time, we value companies with an experienced and collaborative management team
Financial Considerations:
- Target business generate stable and predictable cash flows, typically with EBITDA (Earnings before interest, tax, depreciation, and amortization) of at least $1.5 million
- Opportunities for operational improvements that can drive growth without sacrificing stability
- Our team conducts in-depth financial due diligence to ensure that EBITDA levels are accurately represented, adjusting for any one-time expenses or personal costs not expected to recur post-acquisition.
Industry Considerations:
- Industry-agnostic approach grounded in the belief that there are overlooked opportunities across various sectors
- Prioritize industries characterized by low cyclicality, predictable growth, and a steady demand for products or services