Our Approach to Valuation Creation
Clovis Point was established to exclusively pursue high growth opportunities in the lower middle-market. Despite this being the largest segment of the market, comprising over 90 percent of all companies in the United States, it is inefficiently served by capital providers and underserved by many traditional capital sources and advisors. Specifically, Clovis Point targets companies in the lower end of the market segment earning between $500,000 and $3 million in revenue before interest, taxes, depreciation and amortization (“EBITDA”).
Clovis Point does not focus on any one particular industry, but rather invests in companies with highly scalable business models. These companies tend to be less capital intensive and leverage a low fixed-cost infrastructure. Examples of these business models include software-as-a-service, information technology, tech-enabled business services, internet services, light manufacturing and many more. This business model orientation allows Clovis Point to remain opportunistic and responsive to trends in the broader economy.
With a deep understanding of the market, Clovis Point professionals understand the challenges and opportunities that face businesses in this sector. Clovis Point professionals take a hands-on approach in order to be value-added investors and leverage their own experiences as well as that of their extensive professional and personal networks.