Investment Criteria & Transaction Structuring

  • Privately-held companies that are founder and/or family owned
  • Owners seeking a partnership and desiring to retain some equity ownership
  • EBITDA of $3 to $10 million for platform companies (will consider smaller transactions for add-on acquisitions)
  • Nationwide geographic focus
  • Fit with theme-based investment approach (see Focus Industries)
  • Favorable industry forces
  • Sustainable, defensible, and scalable cash flows
  • Opportunities to improve operations through LEAN and other performance improvement initiatives

 

Our Partnership Approach to Transactions

  • While we seek controlling interest transactions (or minority interests with appropriate shareholder protections), we do not buy 100% interests in platform companies
  • Rather, we form partnerships with selling shareholders and management teams that have built successful companies and now desire to realize partial liquidity, and gain a partner that can help build additional long-term value for the benefit of all stakeholders
  • We increase management’s equity incentives and broaden the base of eligible management participants
  • Through our partnership approach, shareholders and management teams could realize long-term value equal to, or in excess of, value received in our initial entry transaction