Capital sources: private equity, alternative lenders, high net worth investors.

Guidance through the capital raising process.

A network of management talent: operating managers, business development professionals, technology consultants, human capital/organization development professionals.

Management’s domain expertise—not money—is the limiting resource for buyout activity.

A multitude of funding and capital structure options.

Expert capital raising guidance for those seeking to acquire their own company or grow with acquisitions.

Proprietary research and vetting of acquisition targets not on the market.

Capital structuring expertise.

Written capital commitments from funding source.

Acquisition Criteria:

1. The acquistion establishes, maintains or enhances leadership in a single niche product/service capability.

2. The acquistion adds, maintains or enhances a proprietary niche product/service capability.

3. The acquistion creates measurable synergies through the combination.

4. The acquistion expands the acquiring company’s geographic footprint.

5. The acquistion is accretive to earnings, i.e., the acquisition increases earnings per share.

6. The acquisition is driven by government regulations assuring recurring revenues.

7. The acquisition returns a minimum of $X trailing twelve month (ttm) EBITDA.

8. The debt to trailing twelve month (ttm) EBITDA ratio post-transaction is no more than 2.5 times.

Acquisition Synergies:

Real World Example:
Our firm is executing a roll up of several oil field service companies. Synergies are available by combining companies which offer complementary services, for example: ABC offers oil storage tank API certified mechanical repair and maintenance while a second target acquisition, DEF, offers oil storage tank coating and painting, two entirely different services. ABC is located in a city where DEF has an office. The two offices can be combined, services can be cross-sold to each other’s customers, and human resources and hard assets can be rationalized. Furthermore, the combination of the two companies will increase the geographic footprint of customers served for both companies.

By rationalization, we don’t mean cutting staff without any concern for employees’ welfare. What we do mean is we will let employees of the combined companies keep their jobs as much as practical. Where there is duplication of staff, we will find jobs in the partner company where they are available. If there are no jobs available, we will provide outplacement services with ongoing salary and benefits for some period of time.

The same can be said of hard assets. For example, the two companies may use trucks to provide services to their customers. When it makes sense to keep all the trucks and there is no duplication of service routes, we will do so. We will also continue to employ the drivers. If there is duplication of equipment or routes and the equipment is underutilized, we will sell the equipment while retaining the driver(s) as described above.

In addition to ABC and DEF, we have made a verbal offer to a third company which builds new gas pipelines and compressor stations as well as performs repair and maintenance of same. Oil storage tanks are owned by pipeline companies, so if these three companies were combined, all three could potentially serve the same customers and all three companies can benefit by cross selling their services to each other’s customers. This is a great example of the synergies available on both the cost side and the revenue side.