Stable Operating History:
We prefer to buy stable companies with a consistent trend of historical profitability. The firm will be somewhat opportunistic, though, if a company has significant potential but has suffered a temporary operational interruption and needs an infusion of fresh capital.
Experienced, Committed Management:
We seek to partner with management teams currently in place who possess the vision and drive to take their companies to the next level of growth and profitability. In the case of a retiring owner with no succession plan in place, we can supply our own management in order to facilitate the transaction. In either case, we invite key members of our management teams to invest their own cash equity side-by-side with the firm’s equity in each transaction.
Untapped Growth Potential:
We look for companies that possess some degree of latent growth potential, whether manifested as underutilized management talent, a competitive niche not fully developed, proprietary assets or technologies not fully exploited, sales channels not historically pursued, production capacity significantly underutilized, etc.
Defensible Business Niche:
We feel more comfortable owning companies that have a sustainable competitive advantage through a differentiated, value-added product or service. Preferred companies may be leading players in niche markets or in a specific geographic region.
We prefer to purchase companies with revenue ranging from $10 Million to $250 Million. We would like to see industry average profit margins, or underperforming companies with opportunities for margin expansion.
All else equal, we feel comfortable working cooperatively with organized labor.
We are very sector-focused and will only pursue investments in which we have a compelling rationale for adding value. Our preferred sectors include industrials, food processing, business services, healthcare, aerospace, oil and gas and technology.
Flexible Transaction Structure:
We are control-only investors but are otherwise flexible in structuring our transactions. For example, we will consider acquisitions of family businesses in which the family desires either a complete exit or minority rollover, divestitures of non-core operations by a parent company, and going-private transactions. We also invest in special situations, such as companies needing a balance sheet restructuring and/or management assistance.
We make investments anywhere in the domestic United States. Additionally, our principals have significant experience sourcing and managing overseas vendor relationships and developing and operating manufacturing facilities in international markets.