© 2016 by AAF GROUP

STRATEGY

Target Financial Characteristics
  • Main focus growth/late stage companies

  • Revenue:  $ 5MM +

  • Gross margins: 30+%

  • EBITDA positive, or clear line-of-sight to profitability

  • Annual growth rate of 15+%

Target Deal Characteristics

  • Proprietary, technology-driven solutions

  • Execution, scale up risk, but minimal technology risk (existing commercial product/s)

  • Potential to be a segment leader

  • Preferably founder-owned and/or limited prior institutional funding

  • Experienced management team

  • Israeli and North American companies with global appeal

Target Business Model
  • Solving a “MUST HAVE” problem in a major market segment

  • Clear need with a substantial market and growth potential

  • Water deals that complement Ag and Food needs

  • Focused on services and distributed opportunities

  • Recurring revenue via concessions, water as service, outsourcing

  • Clear ability to scale commercially with repeatable economics

  • Visibility on exit potential 

Target Deal Terms
  • Growth equity and/or heavily structured minority recapitalizations

  • Preferred stock with negative covenants and control provisions

  • Structured transactions in Water (BOOs, Projects …)