Founded in 1998, this private investment firm with over $300 million in their current fund is focused on making equity investments in America's smaller middle-market companies. They seek to generate long-term capital appreciation through a value oriented investment strategy. Their ultimate goal is to create value – for customers, employees, suppliers, lenders and shareholders. Their objective is to help management move their companies to a better, more profitable position.

General Criteria:
Revenues: $40 - 200mm
EBITDA Range: $8 - 30mm
Margins: 13% + EBITDA margins
Geography: Nationwide
Structure:
• Control positions, always partner with management
• Utilize senior debt only (no mezzanine or sub-debt), in addition to their equity investment which is usually 30% to 60% of the capital structure initially

Target Industries:
Stable demand industries that possess:
• Strong defensible market positions
• High operating margins
• Strong operating management
• Multiple growth opportunities

Past And Current Portfolio Companies Include: Financial advisor/asset manager to state and local governments; dining and entertainment cruises; independent specialty retailer catering to resorts and casinos; folded carton packaging manufacturer; shelf stable bakery products for the military, eyewear and eye care accessory products; premium Asian appetizers and entrees; promotional products/home-based solution network.

Founded 1999, this Private Equity Group provides capital and trusted counsel in partnership with proven managers to drive the growth of promising companies into outstanding enterprises. They will acquire a majority interest in partnership with proven managers, and are also comfortable supporting managers as a non-control investor, providing flexible investment structures designed to uniquely meet the needs of both the company and its owners.

General Criteria:

Revenues: $10 - 75mm
Investment Size: $3 - 10mm
Transaction Type: Buyouts, recapitalizations, non-control growth equity investments
Geography: Mid-Atlantic and Eastern US; will consider Midwest and Southeastern US

Target Industries:

Seeking growing, well-managed companies which need counsel and support as they grow into market leaders. Always strong partner with existing/recapping management. Opportunistic as to industry. Interested in opportunities with complications or unique attributes that may repel other potential buyers. Business and consumer services and products tend to fit well

Current and Past Portfolio Companies Include: Special event digital photography services; point-of-sale products and lifecycle support services for retailer store automation; fragrance, bath and body products; portable x-ray and mobile diagnostic health services; private cable operator and broadband solutions provider; janitorial and maintenance services provider; regional railroad system; designer, seller and distributor of active wear; regional provider of home infusion and respiratory therapy services; toxicology laboratory.

An ESOP Holding Company that seeks to partner with both ESOP and non-ESOP owned companies. Uses a diversified holding company structure with the holding company acting as a sponsor of the ESOP, rather than the individual operating companies. This structure diversifies participants’ retirement benefits and shifts fiduciary responsibilities and ESOP administration from the operating company level to the holding company. Under this structure, senior management of each operating company is compensated through equity-based incentive programs independent of the ESOP structure.

General Criteria

Revenue: Between $10 – 100mm; if target is currently ESOP-owned, size criteria is less of a focus due to potential stock exchange
EBITDA: Between $2 – 10mm
Transaction Type: Recapitalizations, Acquisitions
Transaction Structure: Must acquire at least 80% post acquisition; if seller not selling 100%, seller may reinvest at the operating company level. A phantom stock equity plan may be used as an incentive for management of operating company.
Growth: Proven earnings history; sustainable cash flows
Geography: North America

Target Industries:

Mature and profitable industrial, construction products or commercial manufacturing companies.

Current Portfolio Companies Include: Concrete pole manufacturer; PVC pipe manufacturer; traffic control enclosure manufacturer; industrial air/gas blower and vacuum manufacturer, electronic manufacturing services (EMS) company for OEMs.

Founded in 1995, this private investment firm with over $220 million in their current (third) fund primarily utilizes a buy and build strategy whereby they seek to deploy approximately $10 to $20 million initially in equity from their fund, then double that investment in the platform over the life of their investment. This group is most interested in entrepreneurially managed or family-owned targets, but the CEO does not necessarily need to remain post-transaction. They average 2 to 3 add-on investments per platform, and are most interested in scalable platforms that offer the opportunity to grow through acquisitions of complementary companies in fragmented industries. They do not over-leverage their initial acquisitions, using about 50% of equity (and no mezzanine) in the capital structure on new platforms. They require a control position (60% ownership initially to allow for some dilution).

General Criteria:
Revenue Range: $20 – 100mm
EBITDA Range: $3 - 15mm (no minimum for add-ons)
Margins: 5%-8% or greater EBITDA margins;   
20%+ Gross Margins 
Geography: Nationwide
Structure:
• Control positions, always partner with management
• Approx. 50% equity initially, and senior debt (no    mezzanine or sub-debt). 
Need: scalable, fragmented industries.
• Defensible market positions
• Predictable/repetitive demand 

Target Industries:
• Generalists
• Industrial Maintenance Services
• Third-Party Administration
• Building Products
• Publishing
• Aviation Services
• Lawn & Garden
• Packaging
• Specialty Chemicals
• Sporting Goods
• Warranty Repair Services 

Past And Current Portfolio Companies Include: Outsourced publishing services for Pre-K thru 12th grade education; specialty chemicals for insect control; commercial printing and fulfillment; architectural steel doors and frames; pressure sensitive tapes; third-party administrator of health/benefit plans; warranty repair services for cameras and camcorders; producer of mulch and soil.

Private Equity Client 5:
New York-Based Family-Backed Private Equity Firm

Founded in 1984, the firm looks to deploy its proprietary capital into profitable middle-market companies in the form of equity and sub-debt. With no outside limited partners, the office seeks to create a structure designed for long term success past the usual five year holding period of traditional private equity funds. The firm seeks to partner with strong management teams already in place.

General Criteria:
Revenue Size: $10 - 50mm EBITDA: $2 - 6mm
Investment Type: Buyouts, MBOs, Growth Capital
Investment Size: $2 - 15mm in equity, will consider minority positions
Geography: Typically East of the Rockies, will consider Midwest down through Texas

Target Industries:
Opportunistic with a preference for consumer products, services and retail companies, but has made investments and has strong expertise in manufacturing and also mail order/on-line businesses that sell consumer products.

Current Portfolio Companies Include: group of Dunkin’ Donuts stores; bowling ball, bag and bowling center capital equipment manufacturer; consumer bathroom products manufacturer and distributor; bicycle accessories retailer; supply chain software developer; home fitness equipment manufacturer and marketer; internet-based retirement plan record-keeping and support services to financial industry.