There is no typical TOM Capital deal. We do not specialize in any industry. The best evidence of this approach is our portfolio, which is diverse in size and spans a wide range of industries.

TOM Capital can, and does, take a more flexible approach to investments as a result of our platform structure:

• We focus on the competitive advantages and growth potential of any given possible acquisition, and will consider smaller acquisitions if the business can be readily "tucked in" to an existing TOM platform;
• We can more aggressively pursue the acquisition in distressed or challenging circumstances; and
• A strong, entrepreneurial management team can grow - they can lever their skills sets to contribute to existing platforms, or be part of a new platform, for TOM Capital.

Apart from the above, what we look for in potential investments are some or all of the following characteristics:

• Free cash flow of at least $2 million per location or management region (or the near term potential to reach this threshold);
• A preference for Canadian-based businesses, with an even higher preference for those based in Western Canada;
• Strong incumbent management team, most of whom are prepared to continue with and grow the business, or businesses that can be "tucked in" to our current platforms (where we currently have this management); and
• The prime focus is on investments that require capital, generally in range from $5 million to $50 million.  For even larger transactions, TOM Capital may arrange participation from other investment industry contacts.

Some of TOM’s preferred areas of investment are: real estate development, oil and gas production, oil and gas services, wood & metal manufacturing, and other businesses with developed products and established markets.

In general, TOM Capital has the in-house expertise and capital to allow it to quickly review and commit to transactions on an agile and flexible basis, if required. TOM Capital will consider virtually any kind of investment structure, provided that it will almost always require equity participation. For those situations where TOM Capital needs to call on some resources that are not in-house, it has relationships with other organizations and individuals that are capable of providing expertise quickly.

TOM Capital's preference is for situations where the return on its capital can be enhanced with its effort, ingenuity and ongoing management input. This includes transactions with distressed companies, or situations where there is an impediment to a routine orthodox transaction, such as litigation. TOM is also interested in projects where some or all of the value is created by the monetization of income tax attributes.