We are interested in working with owners, existing management teams and sponsors to acquire lower middle market companies with revenues of $10 million to $100 million.
what we look for
Because of the capabilities that we have within our team, we are able to consider a broad set of acquisition candidates. We don’t have fixed criteria and will consider low growth and high growth companies irrespective of recent operating profitability. Our interest is in situations where we can see a path to increase value in a three to five year horizon through strategic positioning and effective use of capital and operating tactics. Complementary acquisitions often play a role in this process, but we require highly integrated acquisitions rather than just cosmetic bolt-ons.
sectors of interest
Healthcare services
Healthcare IT and artificial intelligence
Specialty automotive products and services
Precision agriculture
Advanced manufacturing technologies
Aerospace manufacturing
Industrial and manufacturing
process
Our process for considering an acquisition candidate is simple and streamlined. First, we determine if the candidate fits with either our existing priorities in terms of sector and positioning or a specific partner’s interest. If there is a potential fit, we do a quick assessment of key characteristics. At this point, we can usually provide a value range and see whether there is a potential fit for both parties.
If there is, we will provide a request for the data that we need to proceed with a formal analysis; after which, if warranted, we present an offer (in the form of a formal indication of interest letter) specifying the price and terms of an acquisition. While we are interested in acquisitions where we acquire 100% ownership, we will consider alternatives.. We find that a structure where the seller retains an equity stake in the businesses is often a win-win scenario for both the seller and TCG and can help bridge the gap that may exist between a seller’s expectation regarding selling price and what we may offer.