Detailed Acquisition Criteria
We seek Industrial Manufacturing, Distribution and Service companies that have a history of profitable operations. It is our desire for management to remain or for the second tier of management to move up. Standalone companies need to have a sales volume of at least $15 million, while add-ons can be of any size. We do not require standalones to be 'strategic' or 'synergistic'. We prefer companies to be headquartered in the United States and/or Canada.
We seek privately held or public companies that can fit as standalone acquisitions or add-ons to our existing operations.
We seek privately held or public companies that can fit as standalone acquisitions or add-ons to our existing operations.
- Our primary interest is in Industrial Manufacturing, Industrial Distribution, and Industrial Service companies.
- We look for companies with annual revenues of up to $150 million that are headquartered in the United States and/or Canada. The company can have locations anywhere in the world.
- The company must have a history of profitable operation. We have no interest in start-up or turnaround situations.
- It is our desire to retain capable existing management or to work with a transitional management team. We will operate using periodic reports and a Board of Directors.
- The acquisition price of the company can be up to $150 million.
- Acquisitions will be made with cash.
- We require control. While we prefer to acquire 100% ownership, management participation is a possibility.
- We are interested in privately or publicly held companies including corporate divestitures.
Standalone |
Add-ons |
|
Sales Volume |
Minimum of USD 15 million |
Not critical |
Minimum Profits |
USD 1 million pretax (Midwest) USD 1.5 million (other regions) |
History of profits |
Profit History |
History of profits NO turnarounds NO startups/venture capital |
History of profits |
Management Requirements |
Prefer entire team remain. Can work with retirement plans and orderly succession of second level management |
Flexible; will need to review staff levels/overlaps |
Purchase Price |
Up to USD 150 million |
No min/max set |
Deal Structure |
All cash purchase, can accommodate seller's tax needs |
All cash purchase |
Ownership |
Prefer 100% Management participation a possibility via the use of Phantom Stock |
100% required |