Investment Criteria

At Watervale, we focus on partnering with growing lower middle market companies. We look for companies that meet our criteria in specific sectors where we have experience and prior success. This provides us the opportunity to act quickly and decisively throughout the transaction process and provides a potential roadmap for value creation post-acquisition.

Investment Criteria

Company Profile:

  • Headquartered in North America
  • Businesses with a defensible market position
  • Market leaders with clear value proposition & barriers to entry
  • Compelling organic growth avenues
  • Potential for strategic acquisitions


  • EBITDA < $6M
  • Enterprise Value < $50M
  • Equity Investment < $25M


  • Control investments
  • First institutional investor preferred
  • Recapitalizations of founder / family / entrepreneur owned businesses
  • Corporate carve-outs
  • Distressed or special situations

Target Sectors

Industrial and Consumer:

  • Manufacturing of Engineered Products
  • Value Added Distribution
  • Industrial Services

Representative Industries:

  • Aerospace & Defense
  • Automotive Aftermarket
  • Building Products
  • Enthusiast Products
  • Food & Beverage
  • Industrial Technology & Components
  • Niche Apparel
  • Personal Protective Equipment
  • Process Automation
  • Test & Measurement
  • Water & Filtration