STRATEGY
Target Financial Characteristics
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Main focus growth/late stage companies
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Revenue: $ 5MM +
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Gross margins: 30+%
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EBITDA positive, or clear line-of-sight to profitability
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Annual growth rate of 15+%
Target Deal Characteristics
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Proprietary, technology-driven solutions
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Execution, scale up risk, but minimal technology risk (existing commercial product/s)
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Potential to be a segment leader
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Preferably founder-owned and/or limited prior institutional funding
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Experienced management team
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Israeli and North American companies with global appeal
Target Business Model
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Solving a “MUST HAVE” problem in a major market segment
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Clear need with a substantial market and growth potential
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Water deals that complement Ag and Food needs
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Focused on services and distributed opportunities
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Recurring revenue via concessions, water as service, outsourcing
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Clear ability to scale commercially with repeatable economics
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Visibility on exit potential
Target Deal Terms
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Growth equity and/or heavily structured minority recapitalizations
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Preferred stock with negative covenants and control provisions
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Structured transactions in Water (BOOs, Projects …)