Revenue Size Range
$50M to $250MCompany Location
Southern U.S. from East Coast (VA to FL)to Central Texas (preferred)
Financial Characteristics
Profile A: High returns on capital employed; documented historical performance; Workouts, Turnarounds or Distressed situations considered; No Start-ups
OR
Profile B: Established operating record with a consistent 10% EBIT; not asset intensive for future growth
Industry
Manufacturing, High Margin Distribution, Retail and Services with a strong interest in tangible Consumer Products; No interest in financial institutions, real estate, mining, petroleum production, high technology and natural resources
Typical Acquisition Situations
Generational Changes of Ownership
Retirements
Recapitalizations
De-mergers
Partnership Divestitures
Privatizations
Spin-offs
Unavailable family succession
Funding
The equity is supplied by a pre-qualified established private equity investment firm with an investment record of over 25 years. The investment structure will have conservative capitalization and capacity for future growth and acquisitions.
Buy, Hold and Grow Strategy
Nature of Business
Understandable, practical, traditional; not asset intensive to grow; how compelling customer propositions; stable business sector; not government regulated; has expansion capabilities; products and services can intermingle; manufacturing can embrace technology; infrastructure not over complicated to operate; no commodities
Market Position
Products or services that are not subject to rapid changes in technology or consumer tastes; private label a minimal part of the business; branded goods with strong market share a plus; sales should not be based on being the lowest price provider; under exposed company with market share growth potential OK; can not be in a declining market; well established customer loyalty an advantage; no preferred channel of distribution but in line with the industry and market competition; high margins with history of advertising preferred preferred over low margins with no market branding
Manufacturing Characteristics
Outsoursing OK if adequate infrastructure; experienced and knowledgeable management in process is an advantage; extended raw material lead times not desirable; process can be high-tech if not complicated; non-union preferred
Management Situation
Current management must be willing to support a new leader and embrace change that will carry the company to the next level. Key managers in manufacturing, sales and operations willing to transition are preferred. Former owners or CEO's do not have to stay except for transitional purposes.
