All American Capital’s private equity activities are focused on acquiring controlling interests in excellent middle market companies with strong management at fair valuations.
- Management and Leveraged buyouts (MBO & LBO)
- Corporate divestitures
- Growth and expansion investments
Company & Business Characteristics
- Established and defensible market position (unique or proprietary products, services or customers; or product, cost or other advantages)
- Quality management in-place (we are prepared to augment, but not replace)
- Established and profitable operating history with healthy operating margins and proven free cash flow generation
- High returns on invested capital
- Attractive growth prospects, both internal and external
- Stable or growing markets with limited cyclicality
- Limited risk of technological obsolescence
- Simple, understandable businesses
- Fair valuation
- Headquartered in the U.S., with a preference to Western U.S.
Investment & Financial Characteristics
- Total enterprise values ranging from $25 to $500 million
- Controlling equity investments of $5 to $100 million
- EBITDA of $5 million or greater
- Company revenues of $25 million or greater
Operating Management Philosophy
- We provide active leadership in strategic planning, capital allocation, acquisition and financing opportunities, all with the goal of maximizing enterprise value.
- Day-to-day operating decisions are made by company management.
- We believe in structuring meaningful equity ownership for senior management to create valuable incentives and align shareholder interests.
- We are generalist investors, and industry segment is our least important criterion
- Industries of interest and experience include:
- Consumer Products and Services
- Retail & Restaurants
- Business Services
- Basic Manufacturing
- Value-Added Distribution
- Healthcare Services
- Energy, Transportation & Distribution
- Investment areas typically avoided include:
- High technology, biotechnology, startups
- Competitive Advantages
- Frequently we don’t require third party debt financing to close a transaction, which typically provides:
- Structural flexibility
- Experienced investor across a diverse range of industries
We are actively seeking new investments and encourage executives, investment banking firms, business brokers, attorneys, accountants and business owners/managers to contact us with investment opportunities, ideas or questions. We have no committees and respond rapidly as to whether we’re interested in a particular opportunity, typically within a few days.