Investment Focus & Thesis

Audax Group focuses on established lower middle market companies with strong fundamentals: Investment Range Equity investments typically ranging from $30 million to $100 million in established lower middle market companies. Sector Focus Business services, healthcare services, and industrial growth companies. Business Services — IT services, marketing services, professional services, and facilities services Healthcare Services — Post-acute care, physician services, and healthcare support services Industrial Growth — Niche industrial manufacturers and value-added distributors Consumer Services — Education, fitness, and consumer service concepts

Notable Portfolio Companies

Audax Group has built a diversified portfolio across business services and healthcare: Company Sector Notes Apex Companies Business Services Environmental and engineering services Sterling Legacy Business Services Facilities management services ConvergeOne Business Services IT services and consulting People 2.0 Business Services Professional employer organization Medical Solutions Healthcare Services Healthcare staffing services BioCatch Technology Fraud detection technology Cornerstone Detection Industrial Security detection systems Audax's portfolio reflects their focus on companies with recurring revenue models and strong market positions in fragmented industries.

What Audax Looks For

Based on their investment patterns, Audax Group evaluates opportunities based on: Business model quality — Companies with recurring revenue and predictable cash flows Market position — Strong competitive positions in niche or fragmented markets Management teams — Experienced operators with demonstrated track records Growth potential — Clear pathways to organic growth and strategic acquisitions Financial fundamentals — Strong EBITDA with visible growth trajectory }> Pro Tip Audax is known for its collaborative approach with management teams. They look for companies where they can add value through strategic guidance and operational expertise. Be prepared to demonstrate your business model strength and growth potential.

How to Connect With Audax

Approaching Audax Group requires demonstrating your business model strength: 1 Showcase Recurring Revenue Demonstrate your recurring revenue base and customer retention metrics. Audax values predictable revenue streams. 2 Present Market Position Show your competitive positioning in fragmented markets with potential for consolidation. 3 Prepare Financial Metrics Be ready to discuss EBITDA, cash flow generation, working capital needs, and capital expenditure requirements. 4 Leverage Industry Networks Many deals come through industry advisors, investment bankers, or professional service relationships.

The Value of Financial Preparedness

PE firms like Audax expect detailed financial information specific to business services: Business Metrics • Customer retention rates • Revenue per customer • Contract renewal rates • Gross margins by service Financial Data • EBITDA margins • Cash flow generation • Working capital requirements • Capital expenditure needs }> How Eagle Rock Helps We help business services companies prepare for PE investment by building detailed financial models, recurring revenue analysis, and operational dashboards. Our fractional CFO services ensure your company is ready for due diligence.

Frequently Asked Questions