NELSON EQUITY DEVELOPMENT, LC
Des Moines, Iowa 50309
Licensed
Real Estate Broker in
PROFILES OF REPRESENTATIVE BUYERS
AND INVESTORS
I. A number of private investment firms and managers of private equity funds
are interested in acquiring a variety of manufacturing, distribution and
service companies. Most of these concerns have industries or markets which they
particularly favor or dislike, and they have various size parameters. The
following descriptions summarize the special concerns of a number of these
financial buyers or investors:
#J/60 - Broad variety of hard goods serving either industrial or consumer
markets with annual sales between $2 and $25 million.
#F/33- Minimum annual sales of $5 million in most industries except for
commodities, high tech electronics or industrial machinery, capital intensive
heavy equipment, biotechnology or software development.
#N/60 - Manufacturing and wholesale distribution companies of any kind as
long as exceptionalmanagement is in place or identified. Preferred size range
$5 to $25 million revenues, but smaller for add-ons.
#H/10 - Minimum annual sales of $10 million with special interests in (1)
precision hand tools; (2) equipment and accessories for jewelry, industrial,
dental, optical, nail care and hobby markets; (3) molded rubber products and
plastics, educational and school products manufactured of wood, plastic, metal,
foam, vinyl and paper; (4) specialty printing and tickets, tags, labels and publishing
and printing of religious books, (5) electric supplies, breakers and solar
sensors. Minimum annual sales of $10 Million.
#T/75 - No minimum sales with main interests in pipe and tubing, cast iron
fittings, machining, auto parts - manufacturing and retail, financing services
- leasing, direct marketing advertising and mail order firms. Not interested in
military or apparel products.
#C/32 - Interests include health care and low tech manufacturing. Interested
in companies with annual revenues as small as $500,000. in revenues.
#B/10 - Prefer annual sales of at least $5 million, interested in wide
variety of wholesale distribution concerns. Moves quickly.
#M/01 - Low to mid tech manufacturing with EBIT of $1 million or more. All partners
in this firm are heads of large publicly held corporations.
#S/10 - Manufacturing and industrial service businesses. Prefer industrial
rather than consumer markets. Prefer management to stay. Add on to building
products, things sold to plumbers or contractors. Minimum $5 million annual
sales for stand alones, $3 million for extensions.
#V/75 - Medical and health products. Durable equipment sale and rental,
disposable supplies, nursing products and nursing homes. Home health care. Also
likes information services, catalogs, telemarketing, computer processing, data
preparation, imaging. (SICs 504X, 38XX, 73XX, 808X.) $4 million minimum annual
sales for stand alones, $2 million for product lines.
#M/92 - Companies dealing in building supplies and wood products,
electronics and supplies (capacitors, harnesses, power supplies.) (SICs 24XX,
25XX, 36XX, 5063, 5064, 5065.) Annual sales in the range of $2 million to $10
million.
#L/10 - Communications, radio broadcasting, child care centers, educational
and vocational schools. $2 million and up in revenues.
#I/02 - Companies in highly fragmented markets in US and
#R/02 - Acquiror of middle market companies with extensive portfolio. Larger
companies as stand alones and at least $3 million in revenues for add-ons.
Currently involved in motor vehicle parts, medical and hospital equipment
distribution, industrial machinery and equipment, industrial supplies,
transportation equipment and supplies, chemical - specialty chemicals. (SICs
28, 33, 34, 35, 36, 38, 50 and 51.)
#H/63 - Companies now involved in industrial equipment manufacturing and
distribution as well as instrumentation and medical instruments and supplies.
SICs: 34, 35, 38. At least $3 million in sales for add on situations.
II. Some investment groups are specifically interested in acquiring
operating companies in partnership with management and will consider either
minority or controlling positions with existing management teams or entirely
new situations. The special interests of some of these investment firms are as
follows:
#L/11 - Profitable service companies with sales of $100 million or more
located anywhere in
#G/60 - Likes: direct marketing, environmental services, financial services,
healthcare, information services, natural gas distribution & sales,
casualty insurance, publishing, distribution, vocational schools,
telemarketing, value added distribution. Also "add-ons" in
aggregates, auto financing, cable / wire products, contract guard services,
copier dealers, funeral homes, golf course management, data processing
services, life insurance, newspapers / shoppers, pharmacies, polymers,
personnel agencies, trade magazines / trade shows. SICs 26,27,28, 30 some 33
& 34, 36, 39 plus corresponding wholesale (50 & 51) and business
services (73). $3 million annual sales minimum.
#L/60 - Consumer products (auto / light truck accessories, hobby crafts,
sewing notions, toys, fireplace accessories, stoves, housewares, hand tools,
sporting goods, musical instruments, lawn and garden products, food
specialties); manufacturers (springs, fasteners, tubing, foam, plastics, wood
windows, heavy truck accessories); business and consumer services and
distribution (direct mail, mail order, records storage, lawn care service, pest
control, janitorial service, catalog supply, industrial supplies, candy /
tobacco wholesale, beer, propane gas retail) plus recreation (golf courses,
bowling centers, movie theatres.) Considers turn-arounds. Stand-alones and
add-ons with volume as low as $2 million.
#S/01 - Small companies with interesting growth potential. Does NOT require
majority equity control. All SIC 20XX - 39XX and respective wholesale
distributors plus business and consumer services (73XX).
#A/15 - Does NOT require majority control. Merchant banker with heads of
company making investments. Medium size companies in manufacturing - industrial
equipment and supplies. Special interest in SICs 35XXs and 5084.
#D/06 - Medium size private companies with interesting growth potential. Does
not require majority control. Special interest in machinery and equipment, auto
after-market parts. All SICs 20XX through 39XX and respective wholesale codes.
III. There are many industrial concerns with specific strategic interests.
Such buyers include:
#A/33 - Plastics - plastic blow molding, film and injection molding (SIC
codes 30XX, 3081, 3082, 3084, 3086, 3087, 3088, 3089) with annual sales of $1.5
to $25 million.
#T/33 - Plastics, furniture, apparel, food and consumer products. Minimum annual
sales of $5 million. M, may consider smaller.
#S/60 - Manufacturers of plastics products, preferably home improvement,
home helpers (hooks and gadgets), home organization (coated wire products),
bathwares. $5 million minimum annual sales except for product extensions or
add-ons.
#O/19 - Diversified Manufacturer of products serving industrial niche
markets. Greatest interest in a) specialty components with high engineering
content for sale to OEMs and service providers and b) specialized equipment, such
as agricultural and transportation equipment, sold to end users through
dealers.
#S/08 - Manufacturers and distributors of industrial machinery and /or
related products including high tech and electronics. Would consider turn
around situation. $4 million annual sales except for product extensions or
add-ons.
#C/06 - Manufacturers of such electrical products as arresters, suppressors, regulators, protectors, motors, motor circuit protectors, electrical filters, transformers, power conditioning systems, etc. Extremely interested in IN-BOND type operations: maquiladorsa. $1 million minimum annual sales.
#O/90 - Companies dealing in construction materials and building products:
aggregates, asphalt, precast concrete products, masonry, roof tiles, tempered
glass. Generally seek at least $5 million in annual sales.
#G/06 - Hand tools, specialty tools and other fabricated metals, no size
criteria.
#K/60 - Rubber, plastics, hydraulic components, adapters and fittings for natural
gas distribution. Flexible metal, joints, pumps, mechanical rubber, silicones
and engineered plastics components. Injection molding and thermoplastics.
Flexible regarding size.
#R/06 - Electronics controls and devices for automotive, truck and industrial
applications; electro-mechanical control devices, temperature control valves
and thermostats; specialty hand tools and precision injection molding. (SICs
35XX, 36XX, 37XX, 38XX, 5063, 5064, 5065.) $10 million minimum annual sales for
stand alones, no minimum for add ons and product lines.
#G/28 - Automotive, rubber chemical mfg and distribution. No minimum size.
#G/49 - Truck and truck bodies, parts, equipment and accessories. Annual
sales of at least $5 million.
#F/01- Any plastics fabrication (SICs 30XX) and wholesale plastics.
Particular interest in fasteners. Any size.
#E/27 - Plastics thermoforming operations. No minimum size.
#R/19 - Building supplies wholesale distribution, wood and furniture
manufacturing. No minimum size.
#R/45 - (SICs 3398, 3443, 3451, 3469, 3544, 3569, 3599, 3822, 3823, 3824,
35XX.) Manufacturers of valves, controls, instruments, steam specialties, fluid
handling accessories which measure, control and/or display industrial process
variables, metal heat treating, industrial machinery and equipment. $1.5
million to $25 million sales; profitability not important, will consider
turnarounds; pay cash, stock, notes and earnout.
#D/92 - (SICs 33XX, 34XX, 37XX, 38XX and 39XX.) Aerospace and related
products manufacturing - instruments, parts specialties. Also industrial
machinery, specialized job shop and primary metals. Companies with over $5
million in sales, product extensions under $5 million.
#F/27 - Electrical equipment manufacturer. Looking for stand alones or
product lines, prefer to retain management. SICs 36XX, 3613, 3621, 3625, 3629,
3641, 3643, 3634, 3645, 3674, 3699, Revenues of $1 million to $20 million.
IV. There are, of course, many individual buyers and investors with varying
amounts of capital and a wide range of interests and capabilities.
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Nelson Equity Development, LC
505 Fifth Ave, #800
Des Moines, IA 50309-2324
Licensed Real Estate Broker in Iowa, USA