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 $2 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 multiple 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