Typical Investment Opportunities
- Experienced owners recapitalizing their company or in need of growth capital
- Incumbent management teams seeking a financial partner to support a buy-out from current ownership
- Seasoned operating executives seeking to acquire a firm where they can add value to an under-performing business
Types of Transactions
- 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.
Investments are structured as common and/or preferred equity instruments and MCM does not require a current return in our invested capital.
Target Transaction Size
- Enterprise Value of $10 million to $50 million
- Annual revenues of $10 million to $75 million
- EBITDA of $2 million to $8 million
Types of Businesses
- Niche manufacturers of differentiated products, components, and/or assemblies sold to industrial customers
- Value-added distribution companies generating gross margins in excess of 25%
- Specialty B2B service companies
Areas of Interest
In addition to add-on acquisitions to our existing portfolio companies, the following is a representation of industries of interest:
- Home accessory products
- Medical products and components
- Sealants and adhesives
- High performance composites
- Specialty chemicals
- Water and wastewater treatment
MCM pays referral fees for any investment lead culminating in a transaction.