Investment Criteria
We Seek to Invest in Companies That Are Well-Run but Still
Have Opportunities for Improvement
- Platform companies based
in North America - Add-ons considered globally
- Engineered Industrial Products
- Industrial Services
- Value-Added Distribution
- Platforms $20-$150mm EV
- Add-ons of any size
End Markets of Interest
- Access, flow and motion control
- Aftermarket replacement parts and service
- Electrical utility components, tools, and service
- Energy management components and service
- Filtration products and services
- Food safety and food processing
- Fluid power and power transmission
- Material handling products and services
- Packaging, paper and plastic
- Process automation
- Pumps, valves and cylinders
- Safety products and services
- Select building products and services
- Sensors, test, inspection, calibration, and measurement devices and service
- Specialty contracting
- Technician-driven industrial services
Investment Attributes We Seek
- Positive long-term growth
- Moderate competitive intensity / fragmentation
- Lack of disruptive forces
- Limited private equity involvement
- Availability of add-on acquisitions
- Shorehill seeks to be the 1st or 2nd institutional investor
- Critical products and services
- Complex customer relationships
- Identifiable value-add with gross margin validation
- Manageable risk concentrations
- Multiple avenues for growth
- High-cash flow generation
- Under managed businesses
- Ability to impact company performance
- Directly sourced / limited sale process
- Sale dynamics where we can be a preferred buyer
- Reasonable belief our capital will be preserved
- Situations where our moderate leverage approach does not reduce our competitiveness
