About – Investment Criteria

Red Canoe Capital is a private equity firm focused on long term acquisitions in proven industries which we can comfortably hold for long-term. Our goal is to acquire businesses at a good price from owners seeking exit where we can install or empower experienced management.


VALUE FOCUS

Fair Transactions: We are hyper focused at paying reasonable prices for quality assets which grow in value and generate strong returns, even with conservative business predictions and results.  We like investments which do not require a wealth of assumptions, nor experiments in the market.  We want proven models which demonstrate strong revenue and profitability history. Our goal is not to structure a transaction with a winner and loser, but one where each party is content.

Selectively Extravagant, But Prudently Frugal: Retaining skilled talent is essential to long-term success and predictability.  We will reward management which deliver exceptional results but also focus on not wasting money on needless small expenditures.

Big firm experience with Startup Hunger: All partners have experience in large organizations and working for small new businesses.  We understand the structural benefits of good systems brought by large firms.  As well, appreciating the challenges of operating and starting a small business.  We believe in empowering leaders to allow for faster decision making to aptly respond to daily challenges.

Primum Non Nocere: Learn the business to a deep level before making changes. We are not management consultants performing a 90-day turn around. Our role is to ensure the success of the business and all stakeholders. That means not making large changes early on, or sometimes any changes at all. Taking time to learn the intricacies hands on ensuring any changes are deeply informed. We are not here to build egos.


INVESTMENT CRITERIA

Location: North America based.
Industry Profile: Industry Agnostic, though preference for non-commodity with low criticality. Nothing “trendy”.
Financial Profile: EBITDA/ SDE $1.5MM USD up to $10MM, Stable or Mature business. Not asset heavy.
Ownership: Willingness to stay on for minimum one year if still operating, otherwise management already in place

Reach Out!

If you think your business is a good fit or want to suggest a business, feel free to reach out. We are always interested in speaking to business owners who share our values.

info@redcanoecapital.ca