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 - 15 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.
- Agriculture crop input products and equipment that directly maximize yield
- Livestock, poultry, and animal/pet health products and services
- Medical device manufacturers whose devices ideally would (i) have some electronic smarts and/or software built into them or (ii) be designed primarily for the home healthcare market
- Healthcare service businesses whose services help permanently reduce the cost of delivering health care, in clinics or at home
- Niche manufacturing businesses, particularly those whose products have electronic smarts added to traditionally mechanical functions
- Niche software businesses which are replacing or emulating hardware or automating highly repetitive tasks
- Specialty chemicals, particularly those with exposure to the agriculture or healthcare markets
- Commercial and industrial service companies, particularly those that have a tangible service that requires direct contact with the customer
- Premium (specialty) home services
Geography
- US headquartered, preferably east of the Rocky Mountains
- 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
- 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:
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.
- 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.
- 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.
- 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.