When I was at Jarden (now Newell Brands), we always had clear acquisition criteria when it came to M&A.
- Strong cash flow characteristics
- Category leading positions in niche markets
- Products that generate recurring revenue
- Attractive historical margins / or margin expansion opportunities
- Accretive to earnings
- Post earnout EBITDA multiple of 6-8x
This strategy allowed us to grow from one brand (The Ball Jar company in 2002) to over 50 brands and ~$8b in sales by 2015 when the company merged with Newell Rubbermaid.