Investor Description
Investor is an independent private equity investor focused on the operational and financial improvement of middle-market companies, who favors long-term partnerships over short-term profit and exit
Investment Criteria & Strategy
Target Segments:
- Frozen handheld snacks, appetizers, meals, desserts, and dips – for both retail and food service channels
- Spices, seasonings, soups, tea, dry goods and baking mixes – blending, packaging and distribution for retail, food service and industrial channels
Size
- Sales between $10 – $100 million (no minimum size for add-ons)
- EBITDA between $1 – $5 million (no minimum size for add-ons or turnaround
investments)
Company Characteristics
- Headquartered in the United States (no geographic restrictions on add-ons)
- Voting control is required for all portfolio businesses.
- Do not need management in place, but interested in partnership with incumbent management if possible.
Transaction Types
1. Performing Businesses:
- The Investor invests in performing businesses only if they can use their operational and strategic resources to significantly expand their business. Current ownership or management must be interested in retaining a significant equity stake (in excess of 30%) in the business while partnering with Investor;
- Though typically performing well, these businesses are in need of operational or strategic assistance in one form or another. Investor is uninterested in optimized businesses with recent profitability expansion (the last few years) or where current ownership or management is interested in cashing out.
2. Turnaround Investments
- A demonstrable explanation for corporate underperformance. Examples include failed acquisitions, poor business decisions, industry cyclicality, over-leveraged balance sheets, and/or excessive legacy costs;
- A compelling path to profitability. The turnaround does not need to be complete or even underway (Investor enjoys the restructuring process and many of the investments are cash flow negative upon acquisition). Investor just needs a vision for operational improvement;
- Revenues in excess of $10M. Add-on investments need only be a compelling strategic fit with an existing portfolio investment and may not fit into any of the above categories.
3. Special Situation Investments
- Corporate Orphans: Smaller divisions of larger companies that have suffered from a lack of attention and resources;
- Companies with Customer Concentration: Companies with a concentration of one customer or a single, non-desirous customer type. So long as Investor believes a company is marketing a compelling product or maintaining a specific market niche, Investor is interested;
- Out-of-Favor Industries: Companies in industries that investors avoid due to the timing of an economic cycle, headline risk, or unfavorable industry dynamics. So long as Investor believes that a company is marketing a compelling product or maintains a specific market niche, Investor interested;
- Companies with Unique Environmental, Union, or Other Problems: Investor is very experienced with investing in companies suffering from unfavorable union dynamics, environmental concerns or other unique issues. If Investor can quantify these problems and ascertain a methodology to mitigate their risk, Investor is open.
Please Contact GALILEA LUQUIN-ESTRADA (galilea@plethorabusinesses.com) for more details.
