Over the course of three decades, we have built a successful track record of partnering with like-minded business owners and management teams of lower middle market, niche manufacturers and value-added distributors of highly engineered components. Our investment interest and expertise spans the supply chains of our target end markets, including a broad array of technologies, products and services used in the production and aftermarket support of aerospace and defense, medical, diversified industrial and engineered materials businesses.
We focus on acquiring niche manufacturing and value added distribution businesses generating $10-$50M in annual revenue
We focus on niche manufacturing businesses generating 35%+ gross margins and value added distributors generating 25%+ gross margins
We focus on acquiring niche manufacturing and value added distribution businesses generating $2M-$8M of EBITDA
High value-added component manufacturers and distributors serving industry OEMs, Tier 1 and Tier 2 suppliers
Businesses with highly defensible capabilities enabling them to manufacture mission critical components for the A&D supply chain
Manufacturers and value added distributors leveraging unique technical capabilities to convert highly engineered materials into mission critical components
Companies with a defensible competitive advantage serving growing and diverse end markets
We focus on making control investments in entrepreneurially led businesses where we can add value. The vast majority of our transactions are leveraged recapitalizations where incumbent ownership retains a significant equity stake in the business while maintaining operational control of the business. The following are transaction types we have completed:
Recapitalizations
A recapitalization is the sale of a majority of a company resulting in personal liquidity and minority equity retention for the business owner, freedom from personal guarantees, preservation of the management team 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 utilizes capital from an investor (i.e. MCM) to acquire a company.
Divestitures or Spin-Offs
An incumbent management team partners with an investor (i.e. MCM) to acquire an “orphaned” or “non-core” division of a larger company.