Hey folks,
First time poster here, so be gentle! I have an interview coming up and I've been sent a case study where I have to put together a buyers list with a few strategic buyers and one financial buyer. Here's the company/client:
-Privately held
-midwest US based
-Current owner/president wishes to retire shortly after sale. Departure will likely create a senior management void
-$75 MM revenue
-$8 MM EBITDA
-Manufacturer off plastic home houseware products, including plastic totes, plastic bins and a variety of other plastic storage containers
-All products used in consumer applications
-Customers are predominantly mass market retailers and home improvement retailers
-40% of sales are to a single mass market retailer
-50% products sold under Company's brand, 50% private label
Now, I think i have a good idea, or at least start, for the strategic buyers. Rubbermaid and Tupperware are obvious choices. I'm more concerned with the financial buyers. I have Cap IQ access, and I've run a screen for PE firms dealing in consumer discretionary or household products, Midwest geography, revenues>$50MM, EBITDA> $5MM. I'm reading through the descriptions to narrow down. I've started with 77 results. Based on the info provided, does anyone have suggestions on how to further narrow down the financial buyers? Once I make it through the first run, I plan on looking at the remainders' current/past portfolios to see if they have direct experience with similar portfolio companies.
Any and all suggestions are welcome! Thanks everyone!
If you use keywords in your screen, then you should be able to narrow that list of 77.
Thanks Mr. Hansen. I have done that. Unfortunately many, if not all, meet the criteria as far as revenue size, EBITDA, geographic focus, and industry focus. I was able to narrow down to about half, and now am looking at each PE firm's current/past portfolios to see if there are any similar firms. I have a feeling I'm going overboard for this, but better too much than not enough, right?
Look at when they raised their last fund - if their last raise was in 2007, they're likely out of dry powder and can't do significant new investments. That'll get you to a list of buyers that can actually make the capital commitment.
If you really want to go all out, check out the portfolio companies on each PE firm's website. The ones with complementary or similar businesses would be good bets.
Also, don't discount larger PE firms. These guys might own a portco who would be a good candidate to make a strategic bolt on acquisition, but you may have already covered your bases on these.
Thanks CHI!! Much appreciated!
When is the interview? Shoot me a PM and I can be helpful with this.
Will do! thanks Hugh!
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