Acquisition Criteria

Typical Investment Opportunities

• Experienced owners recapitalizing their company or in need of growth capital, or…
• Incumbent management teams seeking a financial partner to support a buy-out from current ownership, or…
• 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.

MCM Quick Response Program (MQRP)

MCM prides itself on its proprietary program designed to make your jobs easier - MCM’s Quick Response Program (“MQRP”) . Whether you are a business owner, sell-side intermediary or buy-side intermediary, we return every phone call within 24 hours, every email with 24 hours, will visit a company within 2 days of an introductory conference call, will turn around a Letter of Intent within 48 hours of being provided financial statements and meeting with management and have the ability to close a transaction within 45 days of signing a Letter of Intent.

Investment Structure

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 $15 million to $50 million
• Annual revenues of $15 million to $75 million
• Minimum EBITDA of $2 million.

Companies of Interest

MCM invests in manufacturers, value-added distributors and service-related companies operating in fragmented and growing markets.

In addition to add-on acquisitions to our existing portfolio companies, the following is a representation of industries of interest:

• Specialty chemicals
• Medical component products
• Home accessory products
• Engineered materials
• Packaging
• Specialty distribution
• Building products
• Transportation & logistics
• High performance composites

Geographic Preference

East of the Rockies

Fees

MCM pays referral fees for any investment lead culminating in a transaction.