Glickman Capital seeks to partner with excellent management teams in companies where opportunities exist to maintain and enhance profitability internally as well as through acquisitions. We invest in businesses that possess a competitive advantage and the ability to generate growing cash flow. We normally acquire majority control of companies through leveraged buyouts, recapitalizations and/or growth capital transactions where sound strategy and superior execution can enhance revenue and cash flow. However, we will consider minority equity investments under certain circumstances.
We partner with outstanding operating executives to build significant businesses capable of sustaining their success for all stakeholders - management, employees, shareholders, customers and advisors. Rather than investing in the latest fad and looking for a quick exit, we seek opportunities to support the continued growth of the businesses in which we invest through strategic oversight and additional capital investment, as needed.
We generally look for opportunities that can satisfy a majority of the following criteria:
Industry Focus
While Glickman Capital does not restrict itself to any industry or type of business, we have developed experience in the following industries: niche manufacturing, aerospace, consumer products, food service, brand management, building products, telecommunications, water filtration, specialty chemicals, distribution, trucking, retail, vending and apparel.
Glickman Capital targets operations in industries, or industry sub-segments, where growth is possible due to market expansion or through acquisitions of complimentary companies or product lines.
Glickman Capital will generally avoid investments into: natural resource or heavily regulated industries, financial service, insurance, start-up or high-technology companies, service or consulting companies, situations involving commodity-based products, real-estate risks or industries/products where there is significant exposure to product obsolescence.
Predictable Cash Flow
A track record of stable, predictable and growing EBITDA.
Preferred Transaction Size
We believe that the most attractive opportunities in private equity are in companies with existing operating cash flow between $1 and $10 million that have a visible strategy to double or triple EBITDA. This growth may be organic or through an acquisition strategy. Glickman Capital can provide significant assistance to companies in profitably managing this growth.
Glickman Capital targets small and middle-market companies with a run-rate annual revenue base of $5-100 million. We believe that this size company is large enough to represent a stable business model, yet likely to fall below the "radar" of many institutionally funded private equity firms. GC offers smaller companies access to a level of investment experience and industry contacts that are usually only available to larger companies.
Our target transaction value is between $10 and $50 million. Glickman Capital, in conjunction with other investors, will consider investments in companies larger than our typical range.
Glickman Capital will consider companies below these size ranges if they possess high growth characteristics or create a strategic fit with a current portfolio company. Strategic add-on acquisitions of any size will be considered.
Target Product
- A core business with a sustainable competitive advantage in its market segment, derived through a combination of proprietary products or services, low cost production, and/or superior service or distribution capability
- Stable product with minimal exposure to technological or strategic business obsolescence
- Low-to-medium technology product line
- Significant value-add to the customer
- A defensible market position
- Diverse base of customers without significant customer concentration
Target Market
- Relatively mature industry
- Fragmented geographically or by product
- Fragmented suppliers and/or customers
- Limited cyclicality and seasonality
- Some entry barriers (Meaningful barriers-to-entry that allow a company to sustain and surpass their position in the future)
- Competitive market position
- Identifiable niche
Geography
Principally Southern California, but on occasion, we will consider an ideal candidate located in California and/or the Southwestern region of the United States.
Conservative Capitalization Approach
- Low initial leverage
- Additional capital commitment to encourage investment in people and infrastructure
- Introduce new sales and marketing initiatives
- Modernize/consolidate manufacturing and distribution facilities
- Upgrade and enhance technology
- Add-on acquisitions of competitors or complementary product lines
Value-Added Sponsor Involvement
- Leverage relationships with third party advisors, Board of Directors, lenders, and strategic partners
- Enhance the company's strategic planning process
- Identify, diligence and finance add-on acquisitions
Experienced Management Team
Glickman Capital seeks strong and committed management teams with top one or more executives willing to take meaningful equity stakes in the company. We look for a fit between Glickman Capital and its prospective management partners. Our approach is that there should be interpersonal chemistry, a sense of teamwork and a commonality of goals and objectives.
Structure
Glickman Capital will invest in companies both as the sole investor or in combination with other investors as part of larger financings. We are willing to serve as lead investor as well as participate in financings where others serve as the lead investor.
Investment Process
The principals of Glickman Capital are directly involved in all investment analysis and decisions. Therefore, we are able to move quickly in responding to and pursuing opportunities and are not constrained by lengthy bureaucratic approval processes.
Because we understand and know what works for us, Glickman Capital has a lengthy track record of closing transactions, including difficult ones, in a timely and reliable manner.