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InvestmentCriteria

We invest in small-to-lower middle market companies located in the South and Southeast U.S. with enterprise values of up to $60 million and EBITDA of less than $10 million.

We focus on privately held companies in these sectors:

  • Industrial services
  • Industrial products

We partner with strong entrepreneurial managers in search of capital and the management expertise they need to continue expanding their businesses. We seek companies with a proven history of profitability and recurring revenue without the requirement of significant maintenance capital. Far from being hands-off investors, we roll up our sleeves to help grow a company into a market leader.

We believe that our key criteria and investment strategy instills discipline in the investment process. It also establishes tangible metrics to evaluate a variety of companies across industries, business types and sectors.

Rock Hill focuses on companies with these characteristics:

  • Market niche and market size – Established market niche, unique product and/or service generally free from commoditization with attractive growth potential
  • Dynamic, entrepreneurial management – Leaders with the management depth necessary to successfully implement a growth strategy
  • Defensible market position – Defensible barriers to entry from new domestic or international competition
  • Scalability – Management information systems, product sales, marketing and distribution conducive to scale without significant capital investment
  • Strong recurring free cash flow – Leverageable and predictable free cash flow
  • Profitable – Proven history of profitability and growth
  • Reasonable valuation – A valuation commensurate with the company’s growth potential and investment risk
  • Seller reinvestment – Willingness of the selling shareholders who are active in management to reinvest in the company’s future

We are not considering investments in operational or management turn-arounds at this time.

Learn more about our current investmentsour values and our investment team.