Two Roads Equity invests in businesses with the potential for significant growth, often in one of two primary situations:
An entrepreneur who desires a complete sale of the business and transition from day-to-day operating responsibilities.
An entrepreneur who desires a partial sale and help managing the complexities of a growing business.
Two Roads Equity invests in companies with compelling business models characterized by:
Understandable business model and clear value proposition
High degree of recurring revenue from a diverse customer base
Sticky customer relationships characterized by high switching costs and/or a low incentive to switch
Readily identifiable growth opportunities, either internally or through acquisition
Two Roads Equity invests in companies with strong historical financial performance signified by:
Revenue growth in excess of 10%
Operating margins in excess of 10%
Return on invested capital in excess of 30%
EBITDA in excess of $1.5 million