Investment Criteria

Fernstone Capital is dedicated to identifying high-performing companies with strong market positions and long-term growth potential. We offer business owners a strategic exit opportunity that preserves their legacy while ensuring operational continuity and employee stability.

We focus on companies where the owner has reached a pivotal moment—whether that’s due to retirement, the desire for liquidity, or simply having outgrown the day-to-day demands of running the business. Fernstone Capital commits to taking an active role in management to drive sustainable success.

Financial Attributes

• Revenue: $5 to $50 Million

• Profitability: Minimum five years of consistent positive cash flow and profitable operations

• EBITDA: $2 Million or more

• Margins: EBITDA margins of at least 15%

Industry/Company Characteristics

• Market Dynamics: Operating in dynamic, growing industries with a fragmented competitive landscape

• Growth Potential: Significant potential for organic growth and/or strategic consolidation

• Revenue Model: Preference for businesses with recurring revenue streams

• Customer Base: A diverse and loyal customer base with high retention rates

• Competitive Edge: A clear and compelling value proposition with a distinct competitive advantage

Management Profile

• Owner Transition: Business owners seeking liquidity and a well-planned exit strategy

• Transition Support: Owners willing to be involved during a structured transition period

• Team Strength: A strong middle management team ready to collaborate and drive the company’s continued growth