INVESTMENT CRITERIA
What We Look For
Fronterra does not publish its portfolio. What we can set out plainly is the test a business has to pass before we invest, so an owner can tell in two minutes whether there is a conversation to have.
Fronterra’s investment criteria
Enterprise value
- ILS 20–150 million
Profitability
- Positive EBITDA and positive operating cash flow, sustained, before we invest
Location
- Operations in Israel’s southern periphery, or a business willing to expand there
Sector
- Industrial manufacturing, agri-industrial processing, infrastructure and industrial services
Stake
- Control, in every deal. A controlling minority at the low end, up to 100%. This is a requirement and not a preference — an operational model does not work from a passive position, and we would rather say so before a first meeting than during a negotiation.
What we do not do
- Pre-revenue, software-only, turnarounds, passive minority positions, and any business requiring relocation out of the region
Who do we usually buy from?
Succession
An owner in their sixties or seventies, a business worth more than the family wants to run, and no obvious internal successor. We are a route that keeps the plant open and the workforce employed.
Growth the balance sheet will not fund
A profitable business with a real order book and a capital programme it cannot finance from cash flow — a line, a building, a second shift.
A partner rather than an exit
An owner willing to hand over control but not to hand over the business — staying in, keeping a real stake, taking some risk off the table, and having someone competent in the building on Monday.
What does the process look like?
- 1.
A conversation, under NDA if you prefer, before any documents change hands.
- 2.
A short written view from us on whether this is a fit — within two weeks, either way.
- 3.
Commercial and operational diligence, on site, with your team.
- 4.
Terms, then legal and financial confirmatory work.