Investment Criteria

Target Company Characteristics

  • Revenue: $10-100+ million

  • EBITDA: $2-20 million

  • US-based

    • Proximity to Texas a plus on sub-$5 MM EBITDA deals

  • Strong margins

  • Strong free cash flow / modest CapEx

  • Diverse customer and vendor base

  • Non-cyclical

  • Defensive niche / high barriers to entry

  • Highly fractured industry with consolidation potential

Industries of Interest

Appian Way is generally industry agnostic and will consider opportunities across a broad spectrum of the economy. Certain industries of interest include:

  • Complex manufacturing

  • Value-add distribution

  • Industrial products and services

    • Automation

    • Barriers

    • Environmental remediation

    • Fire suppression / restoration

    • Road / pavement maintenance

    • Waste

  • Food & beverage

    • Co-packing

    • Food safety

  • Aerospace & defense

    • MRO

    • Precision part manufacturing

Deal Dynamics

  • Family-, founder-, or management-influenced transaction decision

  • Defined growth plan through organic initiatives and strategic acquisitions

  • Value active, senior-level attention to help execute their vision for the company

  • Appreciate patient capital with a longer-term focus

  • Preference for an alternative to selling to a traditional private equity fund or a competitor

Investment Parameters

  • Typically $10-$50 MM initial investment size

    • Can go significantly higher

    • Significant capital available for add-on acquisitions or growth initiatives

  • Majority or meaningful minority stake