Business isn’t complex, but people are. Duart Mull’s investment structures are simple: we place ourselves on the same level as the founders of the businesses in which we invest.  Our investments are made with the understanding from the outset that our partnerships will run for up to five to seven years before the subsequent exit of the business. As such, our primary criteria centers on the people who will be our business partners. We partner with founders and operators who are trustworthy, competent, serious, and focused on the same goal as we are: a successful financial outcome for the business.

Our main criteria is finding entrepreneurial companies that have developed a proven product or service with a growing customer base. There has to be a simple business case that, given the opportunity to expand current operations, the company can greatly increase revenue and profits by taking a conservative market position. Lastly, there has to be a significant level of confidence that the business is scalable if funds are made available to expand operations and enhance the team.

Growth Capital Investment Criteria

Our Growth Capital Investment Criteria are focused on the following key tenets:

  • We only invest in companies that have real revenue. The business doesn’t necessarily have to be profitable, but it should have a mature product and established customers.
  • The company or divested business unit must be headquartered in the United States or Canada.
  • The company must have a strong management team, sustained competitive advantage, diversified customer base, and a unique value proposition.
  • There are no absolute requirements on industry, but the sector must be stable and the business’s scale must be dependent on enhancing operations and sales, not necessarily major increase in property, plant, and equipment.  Business services and product companies that virtualize manufacturing have generally (but not exclusively) been primary focus areas.
  • The company must have a case for reoccurring revenue and customer acquisition through one or more indirect channels (i.e. distributors, resellers, market partners, agents, etc.).
  • Transaction sizes can be as little as $500,000 to as much as $20 million without syndication or up to $250 million with Duart Mull leading as a syndication partner.
  • Depending on valuation and structure, our investment policy statement permits complete buy-outs, controlling majority positions, and minority equity investments.