We Rely On The Talents Of Experienced Management Teams
We rely on the talents of experienced management teams to run the day to day operations of our partner companies. Through board level support we assist these leading lower middle market companies to increase revenues and build long term value.
We do this by aligning economic interests and bringing our time tested knowledge of small business needs to bear. When we find an opportunity to partner with a company, we work with the current owners and management team to create a structure that works for all involved.
We believe this structure provides for safe balance sheets in tough market environments and operational flexibility to make needed investments in the company. At ICV, we are focused on growing cash flow versus financial engineering through excessive debt.
Management always has a meaningful equity position, and a performance-based stock option program is instituted to allow the management team to receive disproportionate benefit from the equity appreciation they create.
ICV invests significant cash equity in a company, typically 45% to 55% of the transaction value.
The balance of the transaction is typically funded with senior debt only.
Investment Criteria
We look to partner with the strongest companies in the lower end of the middle market and get actively involved in the growth and development of the business.
These companies typically have the following characteristics:
Financial
- Revenues between $25 – $300 million
- EBITDA between $10 – $40 million, EBITDA margins of 10% or greater
Operational
- Superior Management Teams
- Leading Market Positions
- Attractive Growth Opportunities
- Operate in Stable Demand Industries
Industries
- Business Services
- Consumer Goods and Services
- Food and Beverage
- Healthcare
We Approach Each Investment With A Clean Slate And Remain Flexible.
Transaction Types
Here are some of the ways we can partner with companies who are looking to take their business to the next level:
Family Business
We support family succession planning by providing an exit mechanism for non-operating family members to gain liquidity. Active family managers and outside shareholders can achieve partial liquidity and increase their ownership in the company while continuing to run the business.
Financial Sponsor Owners
We assist financial sponsors who have been in a business for a long period of time monetize their investment at a fair price.
Corporate Divestitures & Management Buyouts
We can partner with managers to acquire companies they run, but do not own. We look for:
- non-core corporate assets, where managers acquire a division of their parent company;
- going-private transactions, where management tenders publicly owned shares and take the company private; or
- private-company acquisitions, where management buys shares from the controlling private shareholders.