INVESTMENT CRITERIA
TBG Equity focuses on the acquisition of lower middle market companies – broadly defined as companies with revenue between $10 million and $100 million – with attractive gross margins. We are interested in companies that can grow organically or through acquisitions, as well as those with defensible positions in niche markets with the capacity to build market share under our ownership.
We do not invest in start-ups, turnarounds (unless a tuck-in), business-to-consumer, technology, or biotech companies. Our team prefers industrial, business-to-business companies that have the potential to grow with new partners and access to capital.
We do not invest in start-ups, turnarounds (unless a tuck-in), business-to-consumer, technology, or biotech companies. Our team prefers industrial, business-to-business companies that have the potential to grow with new partners and access to capital.
Industries of Interest
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Key Business Characteristics
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Financial Criteria
Platform:
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Deal Structure
Our flexibility goes hand-in-hand with our desire to build meaningful partnerships and develop successful businesses over an extended period of time. We seek to structure deals that meet the objectives of all parties involved. Previous deals have included compensation in the form of cash, earn-out, seller note, equity rollover, and profit sharing. Transaction structures have included majority and minority investments in the form of asset purchases, stock purchases, and recapitalizations. We are particularly experienced in creating a structure that minimizes taxes and aligns the incentives of owners, managers, and employees. |