Investment Criteria - Tillery Capital- Greater Focus, Better Results, Higher Returns

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Investment Criteria

Company Characteristics
  • Companies whose owners and/or management team are looking for a value-added equity partner to help them grow the business.
  • EBITDA of $2 - 10 million; add-on acquisitions can be any size.
  • Companies that ideally (i) have truly differentiated intellectual property that it owns, (ii) goes to market under its own brand name, and (iii) have international sales opportunities.
  • Underperforming companies and "story" deals are okay. While we do not specifically target those businesses, we do not avoid them either.

Targeted Industries
  • Agriculture crop input products and equipment manufacturers
  • Livestock/animal health products and services
  • Medical device manufacturers and certain healthcare service businesses. Devices ideally would (i) have some electronic smarts and/or software built into them or (ii) be designed primarily for the home healthcare market. Services would be those that help permanently reduce the cost of delivering health care.
  • Niche manufacturing businesses, particularly those whose products have electronic smarts added to traditionally mechanical functions
  • Branded flow control products manufacturers servicing the oil&gas markets
  • Niche software businesses which are replacing or emulating hardware or automating highly repetitive tasks
  • Specialty chemicals, particularly those with exposure to the agriculture and oil&gas markets
  • Commercial and industrial service companies, particularly those that have a tangible service that requires direct contact with the customer

Geography
  • US headquartered, preferably in Southeast or Midwest US

Other Considerations
  • In growing or large and fragmented markets
  • Where proven long-term need for products and/or services is clear
  • Potential for industry consolidation exists
  • Products or services which capture full value chain to the end-user
  • If cyclical, must clearly understand where we are in the cycle

Investments We Do Not Consider
  • Start-up companies or pre-revenue business
  • Real Estate investments



Transaction Types
Tillery Capital pursues a wide range of transactions, each targeting the specific needs of the business' owners and the objectives of the management teams, including:

  • Recapitalizations
    Business owners seeking partial liquidity for the equity value they have created, achieving personal asset diversification, while retaining operational control and leadership of their company.

  • Management Buyouts / Growth Capital
    Management teams who want to buy and grow their business for themselves, but need a value-added equity partner to get it done.

  • Buy and Build Strategies / Industry Consolidations
    In industries that offer potential for consolidation, we seek companies to be used as a platform for growth and industry consolidation through subsequent acquisitions of complementary businesses.

  • Executive Sponsors
    Executives who have identified a compelling acquisition candidate they desire to lead, yet need an experienced equity partner to provide the additional resources and contacts needed to acquire, finance and grow the business.

  • Corporate Divestures of Non-Core Businesses
    Assisting management teams to acquire businesses that previously suffered by a lack of focus or inadequate support from its corporate parent. 

  • Generational / Management Transitions
    Where the owner wants to "sell" the business to the next family generation or the management team.

  • Distressed deals / Reorganizations
    Underperforming or "story" companies going through significant transition, either due to balance sheet needs or challenging operational, management or ownership circumstances; companies in difficult or changing industries, or those with incomplete management teams.

 
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