NELSON EQUITY DEVELOPMENT, LC
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
100 Court Ave., #215
Des Moines, IA 50309-2200
Licensed Real Estate Broker in Iowa, USA