Company Development Stage
Expansion Capital Group typically works with companies that require a first infusion of outside capital to drive company growth to the next level.  Typically, this funding is provided after the company owner(s) have exhausted personal resources and contacts (friends and family) and before the company is ready to approach large-scale institutional funding sources.

Ownership / Management
Management is the single most important element of any business. We seek to partner with owners and managers who have proven track records and exhibit a desire to repeat and improve upon past successes. We look for owners and managers with clear visions for growth and the ability to implement ambitious plans. Attractive compensation programs and incentive-based options for owners and/or senior managers are an integral part of our investment philosophy.

Growth Opportunity
In our view, the most attractive investment opportunities consist of emerging growth businesses that have shown consistent early stage growth in revenues and net earnings. Given this philosophy, our emphasis is placed on finding companies that are growing quickly and then helping them to continue that growth or even to accelerate this growth.

Financial Criteria
Sales Range: $750k - $10m
Cash Flow: $250k - $3m

Key Business Characteristics

• Rapid growth
• High sales per employee
• Meaningful barriers to entry
• Non-cyclical revenue
• Consistent profitability
• High margins
• Potential for development of multiple locations

Industry Preference
Industry preference remains our least-critical deal evaluation parameter. Management and specific business characteristics will almost always serve as the primary metric for judging potential opportunities.

Investment Structure
In structuring financial transactions, we seek to partner with our client companies in every sense.  To this end, we invest our own money, along with outside investment money, in every private equity transaction we structure.  We will consider minority and majority investments, in the form of equity, debt and or participating debt.  The exact form and structure of our private transactions is determined only after an extensive review with company management of the long-term goals and aspirations set for the company.