Rivera Holdings Acquisition Criteria

Rivera Holdings Acquisition Criteria

I borrowed heavily from Berkshire Hathaway’s Acquisition Criteria in the following.  Most criteria are changed to some degree while others remain mostly the same to Berkshire’s on a smaller scale.

Rivera Holdings Acquisition Criteria

We are eager to hear from principals or their representatives about businesses that meet all the following criteria:

  1. Small to medium sized purchases – companies producing at least $500,000 a year operating profit and/or free cash flow. Or companies producing at least $500,000 a year in underwriting profits if an insurance company.
  2. Demonstrated consistent profitability and earning power. We have no interest in future projections and no interest in turnaround situations.
  3. Businesses earning good returns on equity, good returns on invested capital, and companies producing good free cash while employing little to no debt are businesses we will consider buying.
  4. Management in place that is trustworthy and able.
  5. Simple businesses and business models. We will invest in any company we can understand.
  6. An offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).

We would like to make an acquisition in the $1 to $20 million range for significant portions of or whole companies.  We are not interested in receiving suggestions about purchasing small portions of general public company stocks.

We can promise complete confidentiality and a very fast answer — customarily within a few minutes — whether we’re interested. We prefer to buy for cash but will consider issuing stock when we receive as much in intrinsic business value as we give.

We will not invest in any of the following companies at this time because we feel we cannot understand them enough to have comfort in investing in them.

  • Mining/Natural Resource – oil, gold, silver, natural gas, etc.
  • Pharmaceuticals
  • New tech – Facebook, Twitter, SnapChat, etc.
  • Banks

I will repost this list in every Rivera Holdings Annual Report and it will also be posted on the Rivera Holdings website once that is up and running.  Be aware that without notice the above list can and will change from time to time.

If you are running or know of any company meeting the following criteria please reach out to me – Jason M. Rivera – at JasonRivera@valueinvestingjourney.com

Sincerely yours,

Jason Rivera

Chairman, CEO, and Founder of Rivera Holdings