Cobra Seismic Holdings is a privately held holding company which aims to pursue a long-term, indefinite holding period, investment strategy, seeking to identify and acquire majority stakes in established companies that exhibit strong financial performance and operational stability. We look to bolt o…
Cobra Seismic Holdings is a privately held holding company which aims to pursue a long-term, indefinite holding period, investment strategy, seeking to identify and acquire majority stakes in established companies that exhibit strong financial performance and operational stability. We look to bolt on companies meeting specific criteria, including revenue range, EBITDA, operational longevity, and positive cash flow. While we are industry agnostic, we prioritize opportunities within the industrial distribution, manufacturing, and B2B service sectors with a lean towards energy, renewables, water, infrastructure and environmental. Through a disciplined and strategic approach, we aim to create sustainable value and generate attractive returns over the very long term.
Investment Criteria:
1. Revenue Range: We target companies with annual revenues between $2 million and $35 million.
2. EBITDA Range: Our focus is on companies with EBITDA ranging from $500,000 to $3 million.
3. Operational Longevity: We prioritize companies with a track record of operating successfully for at least 10 years.
4. Positive Cash Flow: Prospective companies must demonstrate positive cash flow for the past three consecutive years.
5. Industry Focus: While maintaining an open mind toward opportunities across various sectors, our investment team will give preference to industrial distribution, manufacturing, and service companies operating in the business-to-business (B2B) space.
Investment Approach:
1. Long-Term Perspective: We adopt a patient, long-term investment horizon, recognizing that building sustainable value requires time. Our focus is on nurturing and growing companies over the years, leveraging our expertise and resources to enhance their competitive position.
2. Active Ownership: As a strategic investor, we take an active role in the companies we invest in. We work collaboratively with management teams, and employees to develop and execute value creation strategies, offering guidance on operational improvements, strategic initiatives, and growth opportunities.
3. Capital Allocation: We prioritize prudent capital allocation, ensuring that investments in growth initiatives, research and development, technology upgrades, and acquisitions are aligned with the company's long-term objectives. We seek to strike a balance between reinvesting in the business and returning value to shareholders.
4. Operational Excellence: We support our portfolio companies in achieving operational excellence by identifying and implementing best practices, streamlining processes, enhancing supply chain management, and leveraging technology solutions to drive efficiency and cost savings.
5. Value Creation: Our ultimate goal is to create sustainable value for all stakeholders. We strive to achieve this through a combination of organic growth, strategic partnerships, geographical expansion, product diversification, and operational improvements, all while maintaining a keen focus on profitability and cash flow generation.
We are committed to identifying and investing in established businesses that exhibit strong financial performance, operational stability, and long-term growth potential. By adhering to our investment criteria and adopting a patient, active ownership approach, we seek to generate attractive returns while supporting the continued success of our portfolio companies. Through disciplined capital allocation, operational excellence, and value creation strategies, we aim to build a diversified and resilient investment portfolio in line with our long-term investment objectives.
