Teakwood Capital: Your Partner in Reaching New Heights

Teakwood invests primarily in two different scenarios:

1) Management Buyouts: We invest to support a management team in purchasing a business from existing owners. For example, if you run a business and want to purchase that business from the current shareholders, we may be the perfect partner to back you in a management buyout.

2) Growth Capital Infusions: We invest in companies that are already working well, yet are capital constrained. For example, if your growth is limited to 20% per year, but you could grow 40% per year with $2.0 million more capital, then we may be the perfect partner to back you with a growth equity investment.

Company Criteria Focus:

Teakwood employs focused investment discipline, which allows us to be better partners to management teams. We invest in cash flow positive businesses, most of which have been "bootstrapped" or have received little other institutional investment capital. We primarily invest in companies that are in or near Texas.

We seek to partner with strong teams who will continue to lead superior execution throughout our investment. If we invest in you, it is our intention to work with you for the life of our investment; by definition and by choice, we are management friendly.

We prioritize the following criteria in companies:

EBITDA:	Break-even up to $3.0 million, although we will evaluate larger businesses in the event of an exclusive engagement
Revenue:	Typically under $25.0 million
Margins:	High, sustainable EBITDA margins
Capital Needs:	Companies looking for partners because accelerated growth is constrained by available cash resources or management wishes to buy shares from existing shareholders.
Customer Concentration:	Limited reliance on a concentrated group of customers, although we realize that smaller businesses may experience this dynamic at times
Fair Valuation:	We invest based on realistic market valuations, supported by a history of execution and performance.
Scalable:	Financial, operational and sales/marketing scalability without a need for substantial additional capital infusion after our investment
Investment Size:	Growth equity investments between $1.0 million and $4.0 million, with the goal of investing at least $2.0 million in each business over time. Management buyouts between $4.0 million and $20.0 million, depending upon the nature of the business, size of the company and structure of the transaction. We have resources to make larger investments as appropriate.

Teakwood Capital focuses on specific company criteria more than it focuses on specific industries. We are open to most industries where companies meet the above criteria. However, we do not consider:

	Early stage or seed capital financings
	Energy exploration and speculation
	Restaurants
	Real estate principal investments