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Investment Criteria

PCM seeks companies with leading or niche market positions and (typically) in need of a more institutional business framework. We partner with owners and back management teams to build long term economic value.

We see ourselves as additive partners (as opposed to active day to day managers). We seek to create value through our strategic, business development and institutional capabilities and network.

Transaction Themes:

  • Entrepreneurs and management teams that are seeking to reach the “next” level of success
  • Family owned companies lacking a clear succession plan and in need of some level of monetization for estate planning purposes
  • Underachieving companies due to operational and/or balance sheet issues

Financial Profile:

  • Sales of at least $10 million
  • Minimum Gross Profit Margins of 30%
  • EBITDA of $2 million and above (core target between $3 million and $7 million)
  • Cash flow neutral or positive and low capital intensive businesses

Capital Provided:

  • Equity and debt

Target Investment Horizon:

  • 5 - 15 years

Types of Transactions Include:

  • Buyouts and leveraged recapitalizations
  • Growth and expansion capital
  • Corporate divestitures
  • Restructurings and/or special situations

Industry Profile:

  • Industry agnostic
  • Not active in high-tech or bio-tech
  • Niche/value added businesses
  • Recurring revenues
  • Fragmented industries / consolidation opportunities

Geography:

  • Primary target is North America
  • Rest of the world (opportunistically)