Cottonwood seeks to invest up to $15 million of equity in business services, manufacturing and distribution companies with the following characteristics:
Recurring customer base
Growing or stable top line without wide variations in profitability
Control investments
We look at businesses with and without a management team in place and are comfortable in situations with the Seller retiring.
Cottonwood has a particular interest in the following industry segments:
Distribution – hardware, janitorial supplies, propane/industrial gas, pet products, safety products
Water/Wastewater Related – water testing, water purification equipment and services and municipal water services.
Healthcare – ABA therapy & other autism services, sleep apnea and other healthcare services.
Testing Businesses – rural water testing, product safety testing and equipment calibration
Pet Related Businesses – pet food manufacturing or distribution, pet products manufacturing
eCommerce – soft and hard goods and consumables including cannabis and CBD.
Route Based Businesses – Yellow grease or waste collection, hazardous waste
Software & Business Services – cyber security services and legal related business services such as court reporting, records collection.
Niche Manufacturing – hardware and reusable shipping containers are particular areas of interest.