The following represents some of the important investment criteria developed by InvestAmerica.
InvestAmerica strives to select investments in successful management teams that demonstrate integrity, solid results, balance, depth, experience and defined goals.
Stage of Company
InvestAmerica will consider opportunities with particular interest in companies with sales typically ranging from $10 million to $50 million and with strong growth potential. InvestAmerica's funds typically invest in management buyouts, ownership changes and later-stage growth opportunities.
Historical and projected financial performance, with a capital structure conducive to growing a company, is critical. Emphasis is usually placed on companies with existing and projected sales.
Industry, Technology and Geography
InvestAmerica will invest across a range of manufacturing, service, distribution and technology companies throughout the United States.
Ideally, companies will be seeking less than $10 million with InvestAmerica funds typically participating at the $1 million to $2 million level in the first round of the financing. InvestAmerica often co-invests with other venture funds and has long-standing relationships with many active co-investors.
Favored investment structures include subordinated debt with equity features (e.g. conversion privileges and warrants), preferred stock with equity features and common stock often representing a minority ownership position. Typical rights include liquidity rights, put and registration rights and protective rights (e.g. board seats, anti-dilution rights, etc.).
InvestAmerica will lead or play an active co-investor role and seeks cooperative management predisposed to communicate and work closely with outside investors toward common goals. InvestAmerica and co-investors seek to support management to grow a company and create lasting shareholder value through board participation and continuous communication.
InvestAmerica's primary goal is to contribute to the increase in company value and earn market rate returns for its investments. Identifiable exit opportunities are critical. InvestAmerica generally requires investment agreement provisions (e.g. put rights, registration rights, etc.) to provide for exits.