Business Buyers

Subordinate Lender

This investment company specializes in subordinated debt and structured equity investments in superior middle-market companies. They control nearly $500 million of investment capital and have made dozens of investments in a wide range of industrial, consumer products, retail, food and distribution concerns.                

Major investors include state and corporate pension funds, insurance companies, banks, funds-of-funds and wealth management firms. Investments  are structured to balance the funding needs and capital servicing  abilities of the company with the return expectations of their investors. Typical terms and conditions of debt investments are as follows:                                      

Subordinated Debt                  

• Minimum of $4.0 million, although exceptions for investments promising future lending opportunities are considered.
• Maximum of $30 million, however, loans of even larger amounts are available in conjunction with other limited partners.
• Current interest rate typically  of 10-14%.
• 6-8 year stated maturity.
• Principal amortization in the final 2-3 years of the loan. 

Security generally includes a second lien on the company’s assets and/or stock and key-man life insurance on critical management team members.

A deferred return component usually in the form of equity warrants to generate an all-in return on capital commensurate with the unique risks of the investment and the expectations for similar investments in the marketplace. {Buyer 50158]

CEO Looking to Acquire a Business

Here  are some of the ideal traits this  buyer is looking for in a company to acquire:

1. Business to Business Sales. Potentially a business services company.
2. Light manufacturing or service businesses with an offering that can be differentiated based on value package and brand integrity.
3. A company that can be developed and brought to the next level through organic growth and operating discipline.
4. The company would not be subject to the "China factor" because its product or service cannot be outsourced overseas.
5. The company would have recurring revenue from its customer base, as opposed to one-time sales.
6. The market for the product or service is still fragmented.

Potential target companies: Transportation and logistics, manufacturer of branded consumable product, staffing and outsource industry, security services, data destruction, event management, call center management, route businesses.

Unlikely target companies: Heavy equipment manufacturers, printers, foundries and mills, machine shops, retail. [Buyer 510157]

 

Outsource Services for Utility Companies

This buyer provides outsource asset data management and maintenance services to utility companies. They are looking to make strategic acquisitions of companies that have utility companies as their customers. This buyer is a publicly traded company. [Buyer 510156]

Wants Restaurant

This Buyer recently sold a national name franchise restaurant and wants to buy another restaurant. Must have management in place and earn at least $350,000 a year and located within 10 miles of Encino, CA.  [Buyer 510155]

Environmental Consulting

This professional consulting services firm specializes in environmental sciences, geo-sciences and environmental engineering and is targeting complementary acquisitions in environmental consulting with niche specialty practices. [Buyer 510154]

Technology Companies

This investment group is looking to acquire technology companies. Their principal interest is in companies with proprietary intellectual property serving a significant market segment or an entity which otherwise has a defensible market position in its space. [Buyer 510146]

B2B Service Companies

This buyer is acquiring service companies with seasoned monthly and annual contracts in place. Especially interested in companies that provide maintenance services to property owners. Call Mark Richardson for specific details. [Buyer 510152]

Buyer of "Not for Sale Companies"

This investment firm's goal is to invest in companies that are fundamentally "not for sale" where an active owner/management team needs a financial partner to facilitate a recapitalization to repurchase shares from a retiring and/or inactive shareholder or to support a growth and acquisition initiative. Their investment thesis can best be summarized as follows:

• Back business builders, not sellers
• Invest in proven, profitable companies with business plans that have manageable execution risk
• Focus on event-driven transactions, such as partnership disputes, generational transitions, recapitalizations to buyout retiring or inactive shareholders and growth through acquisition
• Support portfolio companies through active board participation and byfacilitating access to world-class functional expertise to create enduring equity value.

The firm has offices in the Western USA [Buyer 510145]

Los Angeles CA Buyer

This buyer is interested in healthy businesses with a strong record of cash flow. Service, distribution, or light manufacturing will be considered. Must be within 20 miles of Santa Monica; purchase price to $3 million. [Buyer 510153]

Analytical instruments

Buyer wants manufacturers of measurement instruments, process control related equipment, handheld testing and data collecting devices, optics and imaging components, analytical instruments, inspection and quality control devices, motion control devices and drug discovery instruments and products. [Buyer 510151]