- Profitable Companies in the Smaller End

   of the Middle Market

- Strong and Committed Management

- Favorable Market Position

- Opportunities for Growth

- A Need for New Capital

Profitable Companies in the Smaller End of the Middle Market

We seek to acquire or invest in high quality, established businesses in the smaller end of the middle market, typically having valuations between $20 million and $100 million. Such companies will typically have annual revenues of at least $20 million and historical EBIT of at least $5 million. Our target investment size is between $5 million and $30 million per transaction.

We seek to invest in companies led by skilled management teams. In addition, a key element of our investment strategy is to partner with management teams who are willing to invest in their businesses and maintain significant ownership stakes during our investment period.

We prefer businesses with strong market positions, distinct competitive advantages and attractive fundamentals. Such businesses have demonstrated growth in sales and profitability, have established brand names or franchises in their markets, have sustainable pricing strategies, and sell products that have long life cycles not at risk of obsolescence. Such companies typically are #1 or #2 in their core product categories or market segments. In addition, we prefer companies with a diversified offering of products or services that are not highly dependent on a small group of customers and are not dependent on single sources of supply.

Our primary focus is to invest in high quality middle market businesses with attractive opportunities for growth organically or through add-on acquisitions. Sources of organic growth can include favorable demographics and environmental trends, unique value propositions, superior products or services, expansion into new sales or distribution channels, and product line or brand extensions.

A Need for New Capital