Investment Strategy
ACP targets established operating companies where we can identify multiple avenues of organic and acquisition growth with operational improvements and apply conservative capital structures. We partner with experienced and capable management teams that can benefit from professionalization and the implementation of operating efficiencies to drive transformational earnings growth and investment returns. Our involvement is to serve as board-level advisors and leave the day-to-day operations to our management teams.
We seek investments with the following characteristics:
Operating Characteristics:
- Differentiated products or services with opportunities for outsized growth or potential to build into a market leader
- Recurring revenue and cash flow generation
- Businesses ripe for consolidation
- Proven customer base with limited customer concentration
- Headquartered in the United States (international operations are acceptable)
Transaction Structures:
- Management and Secondary Buyouts/Recapitalizations
- Shareholder Liquidity Events
- Family and Generational Transitions
- Carve-Out of Non-Core Assets
- Distressed Situations (Selectively)
- Majority Ownership
Industry Targets:
- Business and Marketing Services
- Light/Niche Manufacturing
- Telecommunications, Media, and Technology
Financial Characteristics:
- Revenue range for platforms: $20 million to $200 million
- EBITDA range for platforms: $3 million to $20 million
- Strong free cash flow conversion
- Add-ons do not have a minimum size but have to be strategic to our value creation plan