Investment Criteria

Overview
Sterling Investment Partners (“Sterling”) has $1.0 billion of equity capital under management, which includes a significant investment from Sterling’s four Managing Partners. Sterling has completed investments, strategic or add-on acquisitions, and liquidity events with an aggregate transaction value in excess of $8 billion, representing more than 75 transactions.

The following summarizes our investment focus:

Financial

• Revenues: $50-$300+ million
• Targeted EBITDA: $10-$40+ million
• Strong, growing, normalized free cash flow

Market Position

• Sustainable competitive advantages in the form of:
  • Differentiated product/service/distribution channel or proprietary process/technology/cost advantage
  • Meaningful barriers to entry

• Evidenced by:
  • Clear company identity in the market
  • Strong market share
  • Financial history of strong returns on invested capital

Growth Opportunities / Prospects for Value Creation

• Growth “tailwind”
• Scalability of business model
• New market / product / service opportunities
• Acquisition / consolidation opportunities
• International expansion / joint ventures

Management

• Continuing management committed emotionally and financially
• Vision and desire to move company to the next level

Broad Industry Focus including:

• Outsourcing and business services 
• Niche manufacturing & industrial companies
• Transportation & logistics
• Unique distribution
• Technology-related companies
• Energy Services 
• Consumer products & services