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    2 Replies Latest reply on Feb 4, 2009 8:02 PM by Adducent

    Client with $65 Million in Investment Capital


      I'm re-posting this since the previous post had the formatting and tags stripped out of it (hopefully this post retains the formatting and tags):


      New Client Annoucement:


      My consulting firm was just retained by an investment firm which manages over $65 million in investment capital to conduct a search for acquisitions for them.


      Their focus is to acquire lower middle market manufacturers, value-added distributors and service companies headquartered in the Midwestern, Southeastern and Southwestern United States with $1 to $5 million in EBITDA (Earnings Before Interest, Depreciation and Amortization Expenses). My new client supports their management teams with financial and operational resources to accelerate growth, optimize performance and create long term value. Where appropriate, they make strategic acquisitions for their portfolio companies.


      I am very excited to be working with them and we have already sourced one candidate that will be presented to them early next week. Following below is their acquisition & investment criteria. + Feel free to contact me at DMLowery@Adducent.TV, if you are the owner of, or have direct contact with the owner of a business that meets their criteria. My client pays my fee, there are not any fees to the business owner.+


      Dennis Lowery
      Adducent, Inc.


      Acquisition & Investment Criteria


      Business Characteristics

      • Companies with revenues of between $5 to $30 million
      • Companies with earnings before interest, depreciation and amortization expenses ("EBITDA") of between $1 and $5 million
      • Purchase values of less than $25 million
      • Add-ons acquisitions with revenues of greater than $1 million


      Industry Segments of Interest


      Alternative Energy/Energy Consulting
      Branded Niche Apparel
      Catalog Distribution
      Dealer Distributed Products
      Electrical Products/Distribution
      Filtration Equipment - Air and Water
      Leisure Products and Services
      Medical Instruments and Devices (Low-Tech)
      Outsourced Solutions
      Plastics and Packaging
      Railroad Products and Services
      Value-Added Distribution
      Branded Consumer Products
      Business Services
      Capital Equipment
      Distribution/Wholesale Trades
      Enthusiast/Craft/Hobby Products
      Food and Ingredients
      Homeland Security/Niche Military
      Lighting Products/Maintenance
      Outdoor Products
      Pet Products
      Pumps and Valves
      Specialty Chemical


      Geographic Focus


      Midwestern United States
      Southeastern United States
      Southwestern United States
      Rocky Mountain Region


      Transaction Types


      Corporate Spin-offs
      Family succession
      Leveraged buyouts
      Management buy-ins
        • Re: Client with $65 Million in Investment Capital
          DomainDiva Ranger
          This sounds too good to be true.

          What piques my 'interest' is the fact that this 'client' seems interested in a wide variety of businesses. I realize Warren Buffet has in Berkshire Hathaway diversified businesses that he understands. Does your client understand these areas and under 'business services' what kinds of business services?

          I would think anyone wanting a piece of that 65million has their work cut out on due diligence.
            • Re: Client with $65 Million in Investment Capital
              Perhaps it sounds that way to those that are not familiar with working with business buyers and investment firms.

              Yes, my client understands those businesses. They have professionals and executives on their team with specific experience and have current business holdings in them. Firms of this type (and I have many as clients) are in the "business" of buying and investing in businesses for their portfolio. They routinely add to their holdings. Their interest in business services is B2B service businesses ... that meet their criteria. A broad category to be sure but one where they can add acquisitions that vertically integrate with their other holdings and open up new revenue opportunities for them.