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Acquisition Criteria

Target Transaction Size

  • Annual Revenues: $10 million to $75 million
  • EBITDA: $2 million to $8 million
  • Enterprise Value: $10 million to $50 million

Types of Businesses

  • B2B companies: Niche Manufacturers, Value-Added Distributors and/or Specialty Services
  • Serving markets growing at or above GDP
  • Competitive advantages around products, services, capabilities, and/or lead times

MCM Experience

Attractive Target Company Characteristics

  • Solve complex or technically challenging issues and provide customized solutions
  • Technical expertise in design and engineering, and /or production methods
  • Critical applications, high-performance, zero-failure reliability
  • Short-run or low-to-medium volume
  • Customers purchase based on value, not cost

M&A Transaction Types

  • Seeking majority control positions only
  • Recapitalizations – A recapitalization is the sale of a majority of your company resulting in substantial cash proceeds to you. A recapitalization offers numerous benefits to the selling shareholder(s) that is/are seeking liquidity but not retirement. These benefits include personal liquidity, continued equity ownership in an amount to suit your personal desires, facilitation of estate considerations, freedom from personal guaranties, preservation of a management team, ongoing control and corporate culture, and a financially strong partner with capital to fund future growth.
  • Management Buy-Outs (“MBO”) – A MBO is a transaction whereby an incumbent management team would partner with MCM to acquire the assets or stock of a company that is owned by a third party.
  • Divestitures or Spin-Offs – This is a transaction whereby an incumbent management team partners with MCM to acquire an “orphaned” or “non-core” division or operating company of a larger public or private company. Our experience has been that “orphaned” or “non-core” divisions and operating companies perform significantly better once they are freed from corporate bureaucracies and able to operate on a standalone basis.

Geographic Preference

  • Headquartered in the United States

Referral Fees

 

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