Investment Criteria
Mason Wells follows a consistent, disciplined strategy for investment success, which we have refined over our nearly 25-year history. Our experience has taught us the utmost respect for the discretion and confidentiality required in private equity investing.
We seek to be the lead equity investor with control positions in companies that meet the following criteria:
- Industries
- Engineered Products and Services
- Outsourced Business Services
- Specialty Packaging and Paper
- Financial Characteristics
- $25 to $250 million in total revenues
- Profitable, with minimum EBITDA of $5 million
- Geographic Focus
- Preferably based in the Midwestern United States
- Competitive Advantages
- Strong market positions driven by low cost structure, strong distribution network, proprietary processes, product design and/or customer relationships
- Limited customer concentration
- Significant barriers to market entry
- Growth Potential
- Commitment to new customers, new products, new markets and potential strategic acquisitions
- Opportunities for Operating Improvements
- Potential to increase profitability by improving functional areas such as manufacturing operations, information technology, sales and marketing, balance sheet management, logistics and purchasing
- Strong Management
- Self-starting, motivated teams that have proven ability to thrive in a performance based culture and create shareholder value
- Transaction Types
- Management Buyout of a Closely-Held/Family-Owned Business
Backing members of management in buying ownership from senior family members or from outside shareholders of a closely-held business. By working with us in a succession transaction, active managers and/or certain family members continue to operate the business while gaining a strong financial partner to assist with capital needs and issues of strategic importance. In addition, the shareholders who sell achieve liquidity to meet their estate planning and net-worth diversification objectives. - Management-Led Buyout of an Orphaned Division
Helping managers acquire non-core divisions of parent companies. Corporations selling divisions require that a buyer has both ample funding and a track record of closing transactions quickly and efficiently. As a well-funded, experienced partner with a strong track record, Mason Wells adds financial credibility to managers in the eyes of corporate parents as they seek to acquire the division they run. - Owner Recapitalization
Assisting an owner of a privately held company who wishes to sell a portion of his/her company for liquidity or estate-planning purposes, while retaining significant equity ownership to participate in the company's growth. Without sacrificing all operating control of the company, the owner can achieve personal liquidity and gain a strong financial partner to assist with capital needs and issues of strategic importance. - Management-Led Buyout of a Public Company
Such transactions typically require Mason Wells to partner with a strong management team and secure a significant portion of the insider stock ownership to vote in favor of a Mason Wells-led transaction.
