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| Investment Criteria |
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| As a general guideline, the model company
in The Fund's
portfolio consists of a complete and experienced management
team, producing a proprietary product line in a billion-dollar
growing market. The company's products and services have
the potential of capturing a large market share and have
a well-defined channel for selling into the market. These
criteria are accorded differing weights from situation
to situation, but the one the Fund most consistently applies
and gives the heaviest weight to is the management team.
Management's investments (both cash and sweat equity)
are important factors in our investment decision. |
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Amerigo also look for portfolio candidates
with focused and effective management teams who:
- possess a clear strategic vision for their company
- have developed a realistic business plan
- have a track record of significant achievement
However, experienced management teams are not enough.
The business model must work and the company plan should
make sense. Does a market exist, or will it? Is there
a compelling need for the product or service? What are
the competitive dynamics? Amerigo seeks to fund companies
in large markets, rapidly growing markets, or in niche
markets not targeted by major players. |
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| Amerigo invests in companies at any stage
of development, from early to mature, as long as they
present an opportunity for rapid growth and a potential
liquidity event. However,
the Fund generally does not invest in pre-revenue
companies in their "seed" stage. Turnaround
situations are considered where potential improvements
can be identified or the source of financial distress
can be removed by de-leveraging. The Fund prefers companies
in the middle stage of development. |
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| Amerigo works with broad investment preferences
rather than rigid transaction parameters. In evaluating
opportunities, we look carefully at the company profile
requiring at least $5 million in revenues, earnings before
interest and taxes of at least $750,000 with an opportunity
to improve, stable cash flow, debt to cash flow not to
exceed five times, and historically profitable cash flow
positive which is adequate to service pro forma debt level,
strong management, a compelling business strategy, and
potential exit through IPO
or sale/merger. |
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Amerigo funds companies with the following characteristics:
- Proprietary technology, products or services
- Specialized distribution channels or techniques
- Demonstrable customer value
- Strong growth dynamics
- Reasonable competitive structure
- Able to create value through partnering and collaboration,
milestone-based funding, and multiple exit opportunities
- Trend Favored Industry: prefer investments in
industries that are growing in response to long-term
consumer trends. These trends may be the result
of underlying shifts in demographics, lifestyles,
and social values.
- Sustainable Competitive Advantage: The company's
products or service should be proprietary or sufficiently
differentiated to enjoy a sustainable competitive
advantage.
- Above average economics
- Excellent long-term fundamentals
- Management has significant ownership opportunities
and substantial percentages of their net worth in
the venture.
- We look for businesses that have opportunities
for above-average margins and returns on equity,
and excellent financial leverage.
- Geographic Location: Companies headquartered in
the United States.
- Financial Characteristics: Cash flow adequate
to service the projected debt.
- Exit Strategy: A viable exit strategy within the
next three years which could include the following:
re-capitalization,
sale,
merger,
or IPO.
- Proven concept with distinct competitive advantages
- Multiple realistic exit opportunities
Depending on the needs of the companies, Amerigo itself
invests between $250,000 and $2 million per opportunity.
Over time, The Fund
anticipates having between 15 and 20 companies
in its portfolio. Investments are selected for their
ability to create value for management and investors
over a three to five year time horizon. |
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| BUSINESS PLANS OR EXECUTIVE
SUMMARIES |
We are always looking for new investment prospects.
If you feel you have an opportunity that would fit with
Amerigo´s approach and strategy, please submit a business
plan or executive summary here...
Amerigo Corporate Finance Partners, LLC
20501 Ventura Blvd. Suite 270
Woodland Hills, CA 91364 |
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AMERIGO
CORPORATE FINANCE PARTNERS, LLC
"Sailing
on New World Corporate Strategies." |
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