Investment Criteria

Scorpion seeks to make equity and equity like investments from $5.0 million up to $10.0 million, with larger amounts available through co-investments with our limited partners and other private equity firms. 

The foundation of our interest in pursuing most investments begins with an outstanding management team with a proven record of success.  

Scorpion does not have a particular industry focus, but rather defines certain sectors that its principals generally avoid, or that are restricted based on SBA parameters, such as real estate, gaming, tobacco, biotechnology, software development, as well as start-up and early stage ventures.

Company Profile

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Revenues:  $10 million - $100 million

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EBITDA:  $4 million to $25 million, however will consider unprofitable companies that will be profitable as a result of executing the plan that includes our equity investment

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Relatively high barriers to entry

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Stable to growing market

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Above average organic growth prospects

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Fragmented industry with acquisition opportunities

Transaction Types

1.

Later stage growth investments – public and private companies seeking to accelerate growth through:

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Expanding sales and marketing efforts

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Investing in additional manufacturing capacity to meet demand

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Expanding geographic reach

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Acquiring complementary products or expanding product offerings
2.

Traditional buyout transactions in partnership with management, including:

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Corporate divestures of non-core businesses or subsidiaries

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Family-owned enterprises looking towards estate planning and management succession

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Recapitalization transactions

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Distressed or stressed situations, whereby a viable business is hampered by an overleveraged balance sheet or dysfunctional ownership

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Going-private transactions of micro-cap companies not suited for public ownership