Investment Criteria

At Zenxyl, we have specific criteria for our investment targets to ensure alignment with our strategic goals and values. Our criteria include:

 

1. Financial Metrics:

   • Revenue: Between $1 million to $50 million.

   • EBITDA: Between $500K to $5 million.

   • Net Profit Margin: Between 10-30%.

2. Ownership and Management:

   • Preferred Buyout Structure: We accept asset sales but prefer buyouts as stock sales where the seller retains a 5-10% minority stake.

   • Management Continuity: We favor businesses where key management and employees are willing to stay post-acquisition.

3. Financing Eligibility:

   • Bank Financing: The business should be eligible for traditional bank financing.

   • SBA Loan: Eligibility for SBA loans is a plus.

4. Growth and Competitive Edge:

   • Growth Prospects: The business should have growth prospects above the industry average.

   • Competitive Advantage: We look for businesses with unique competitive advantages such as strong local community ties, unique product niches, brand recognition, and robust customer relationships.

5. Intellectual Property:

   • Assets: Ownership of intellectual property such as trademarks and patents is highly desirable.

6. Special Licenses:

   • Licensing Requirements: For sectors requiring special licenses, we prefer sellers who are willing to collaborate with us to maintain these licenses initially until we obtain them ourselves.

These criteria help us identify businesses that are not only financially sound but also have the potential for sustainable growth and innovation. If your business aligns with these criteria, we would love to explore potential opportunities for collaboration.