Investment
We seek to grow U.S.-based small/medium supply chain businesses through buyout and select minority investment
Buyout Approach
Preference for 100% acquisition with intent to bring re-energized leadership, but open to sellers maintaining a small investment
Particular interest in lower-tier manufacturers in the Energy Infrastructure, Aerospace, and Defense sectors
Targets
“Dirty” businesses with
little VC attention
Scalable through operational excellence
Extended customer qualification process
Non-discretionary w/ long term potential
$400k-$4M EBITDA
Sub-tier Manufacturing Companies
Right to Win:
Deep expertise in Aerospace and Defense prime procurement processes
Patience and expertise to compete and qualify for programs
Execution and delivery is a differentiator, enabled with advanced production planning not found in most small manufacturers
Incremental value to primes in working with veteran owned small businesses
Lower-tier manufacturers for highly engineered products gain franchise positions with long (20-40 year or more) periods of product demand. These positions are highly defensible due to long qualification processes that see little to no challenge for small (<$5M/year) accounts. Strong margins developed with learning curve efficiencies, advanced/automated production, and pricing growth over the product lifecycle.
Energy Infrastructure,
Aerospace, Defense,
other engineered products
Non-Discretionary Industrial Services
Major industrial corporations and government are increasingly outsourcing services to avoid labor/staffing risk and remain asset-lite. Competitive tech landscape makes third party tech solutions cost effective while staying abreast of the latest offerings. Margins are sustainable through execution.
Energy Infrastructure,
Aerospace, Defense
Right to Win:
Agility
Execution focus
Comfort with “dirty” businesses
Incremental value to primes in working with veteran owned small businesses
Physical Logistics and Specialty Distribution
Increasing supply chain complexity and just-in-time delivery expectations with limited disruption potential from emerging technologies. Execution is king and market fragmentation reduces.
eCommerce, Energy
Right to Win:
Execution focus
International logistics expertise
Willing to work with small companies
