Thesis invests in businesses headquartered in North America. 

We take the simple approach of putting available capital to its highest and best use. 

We aim to only make investments that

• Are simple to understand with some niche expertise
• Have a durable competitive advantage and a stable diverse client base
• Are led by a healthy layer of non-owner mgmt with integrity & capability
• Occur at attractive prices and a margin of safety

Criteria for Private Companies

• Large
• Growing
• Low operational complexity
• Profitable, not in decline, and attractive to lenders
• A large number of firms in the industry provide both acquisition targets and opportunities to exit
• Fragmented – lack of dominant competitors or customers.
• Limited landscape risk including technology obsolescence, regulatory risk, legal risk, commodity risk, major cyclicality, fads/trends

Company

• Attractive valuation
• Stable contractual relationships
• Motivated seller for non-business reasons
• Strong middle management willing to remain
• Product/service differentiation exists or can be created
• Growth potential via organic sales growth, geographic expansion, product/service extension, and follow-on acquisitions
• Long product/service life cycles, not subject to rapid technological change or obsolesce or requiring substantial additional R&D

Financials

• Strong and sustainable net profit margins ( ideally 15%+ net margins )
• Realistic liquidity options in 3-6 years
• Predictable, stable, and recurring revenue
• History of profitability, currently generating at least $1-5 million of owner earnings
• Not a business in decline
• Low to moderate capital intensity, creating the ability to generate high returns on tangible capital
• Cash flow and assets sufficient to attract and service acquisition capital structure
• $5+ million in revenues and greater than $1+ million of owner earnings