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The Catalyst Group seeks to invest equity in middle-market businesses where a management team and/or a business owner wishes to advance the business by utilizing our capital to execute a well-defined strategic plan.
We prefer meaningful equity participation by key management/owners. If an owner/operator is seeking to reduce his or her involvement over time, arrangements can be made for an orderly transition, provided a capable and fully functional management team is in place.
Working with management teams, we determine an optimal capitalization to satisfy management’s expansion plans. As a long-term investor, we assist the management team in various areas of strategic planning and provide a balanced and informed “outside” perspective, which we believe ideally compliments managements “inside” perspective.
| Preferred Industries: |
Equity Investment Criteria
Manufacturing, Distribution and Service |
| Transaction Types: |
Generational changes of ownership, acquisitions of corporate divisions and subsidiaries, capital for growth and expansion, and recapitalizations |
| Geographic Location: |
Nationwide, with emphasis on the Southwest |
| Investment Size: |
$2 - $10 million |
| Structure: |
We have the ability to take majority or minority ownership positions. In addition, we prefer to conservatively capitalize our portfolio companies to meet future growth expectations. |
Company Characteristics
- Revenues of $10-$100 million
- Profitable, growth-oriented companies with stable operating margins
- Experienced management teams with significant equity ownership
- In operation for at least three years
- Headquartered in the U.S.
Terms
- Flexible and tailored to the business and stake-holder’s requirements with a holding period of at least five years
- Management to remain in place with structural incentives to participate in the upside of the company, with complete day-to-day operating autonomy
Excluded Industries
- Real Estate, Oil & Gas E&P, and Financial Services,
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