- “We don’t have to be smarter than the rest. We have to be more disciplined than the rest.”
- Warren Buffett
Discipline. Discipline. Discipline.
D Cubed is not in the trading business – we are long-term partners. We are not the right investor when all constituents are seeking to exit ownership. But we are the right partner when liquidity needs and/or a desire to optimally resource a business toward creating the most successful long-term result drives the desire for a value-added partnership. D Cubed prefers to invest in partnership with owners and executives who are passionate about retaining a meaningful equity stake in their business or investing in the business alongside us.
While we will consider investments in businesses with special elements that may be outside of that outlined below, our primary focus is on investments that fit the following criteria:
| Investment Size |
- $25 million to $100 million of equity capital (with willingness and access to capital to make larger investments)
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| Target Company Size |
- Small to mid-scale businesses
- EBITDA >$8 million (smaller for add-ons); $8-$25 million EBITDA sweet spot
- Enterprise value between $30 million and $250 million (in all cases, with the willingness and access to capital to make larger investments)
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| Geographies |
- Significant operations in the U.S. and/or Canada
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| Industry Sectors |
- Direct & Multi-Channel Retail
- Branded Products
- Foodservice, Restaurants, and Hospitality
- Franchise-Modeled Businesses
- Tech-Enabled Services
- Business Service Providers to Healthcare and Education
|
| Business Attributes |
- Existing or actionable sources of sustainable differentiation; are or can be long term “special”
- Strong, passionate management energized toward building a long-term great business
- Favorable growth and demographic trends
- Not trend or fad driven
- History of consistent operating results and recurring revenue base
- Potential to retain, attain and/or expand market leadership position
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| Ownership |
- Prefer majority or control investments in partnership with management who are passionate about retaining a meaningful equity stake or investing in business alongside us
- Will consider minority investments under certain circumstances
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| Investment Types |
- Recapitalizations and ownership liquidity situations
- Investments to drive/support growth
- Long-term business building opportunities
- Corporate divestitures
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