Investment Criteria
Leveraging Watchtower’s deep experience and prior success, we have developed playbooks, strong operational resources, and extensive networks within the commercial services, consumer services and B2B products sectors.
Transaction Criteria
Transaction Type
Controlling stake, preferably alongside Sellers
Enterprise Value
Less than $150 million
Watchtower Investment
$10 million – $100 million through the life of a platform (initial investment may be < $10 million)
Target Financials
Maximum revenue of $100 million; maximum EBITDA of $10 million
Business Attributes
Ownership
Family or founder-owned
Geography
United States only (for platforms)
Strong margins & free cash flow
Recession-resistant demand drivers
Growing, fragmented industry
Industry Focus
Commercial Services
Facility Services
Professional Services
Environmental Services
Infrastructure Services
Industrial Services
Testing, Inspection & Certification
Outsourced Logistics
Consumer Services
Residential Services
Niche Consumer Services
Health & Wellness
Animal Health
B2B Products
Value-Added Distribution
Specialty Products
Tools & Components
Industrial Equipment
Value Creation
Examples of our value-creation playbook include the following (not exhaustive):
Strategically enter new geographies and service / product lines
Execute and integrate add-on acquisitions
Develop Greenfield de-novo programs
Supplement C-Suite and V-Level management with functional experts
Build / enhance sales teams
Enhance digital and traditional marketing strategies
Professionalize IT and back-office infrastructure
Develop bottoms-up annual budget process