INVESTMENT CRITERIA

We enjoy partnering with small businesses and are passionate about supporting teams doing important work. Our investment focus is outlined below. We know not every great company checks every box but we’re always open to a conversation when there’s a strong potential fit.

Geographic Focus - Medallion invests in small businesses located throughout the United States.

Transaction Types - We invest in lower middle market companies in support of buyouts, ownership transitions, and growth initiatives.

Typical Investment Structure - We typically invest $2 – $10 million in the form of flexible subordinated debt, often accompanied by a minority equity investment.

Ideal Candidate Characteristics - While not all businesses will meet every criterion, the companies we partner with often share many of the following characteristics:

• $5 million + revenue
• $2 million + EBITDA
• $2 million + operating cash flow
• Qualified and experienced management team
• Strong growth potential with a clear and viable exit strategy
• Defensible market position within a defined niche
• History of strong customer relationships
• Participation by a sophisticated equity investor
• Meets SBA’s definition of a qualified small business

Industry Focus - We take an industry-agnostic approach and welcome opportunities across a wide range of sectors. While we have a particular focus on manufacturing, business services, and value-added distribution, we’re always open to exploring compelling opportunities in other industries that meet our investment criteria.

Industries Not Considered - As a licensed SBIC, there are certain industries in which we are generally unable to invest. These include: real estate, project financing, entertainment, agriculture, oil and gas, and finance companies.