Private Equity Investments for Lower-Middle-Market Companies

Private Equity Investments for Lower-Middle-Market Companies

Private Equity Investments for Lower-Middle-Market Companies

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Our Approach Broken

Our Approach

How We Unlock
True Potential

Your time is valuable. Our time-tested approach guarantees speed and efficiency from beginning to end of each investment process.  Here’s how.

Roebling Value Added™

Businesses in the lower middle market are often run as “lifestyle” businesses, with ample opportunity and potential for creating value. However, many smaller businesses are led by founders who have limited access to talent, time, and resources to invest in the professionalization and growth required for undetermined value creation.

Roebling Value Added™ is how we successfully grow a portfolio company’s cash flows AND achieve a stair-step up in valuation, resulting in higher returns and reducing the likelihood of the inverse.

Rather than a “one-size-fits-all” approach, RCP strives to develop a unique plan for each portfolio company and accordingly deploy items from our enhancement toolkit:

  • Bolstering IT / Systems
  • Top-Grading Management
  • Increased Focus on Sales and Marketing
  • Improve Analytics and Processes
  • Facilitating New Product Development
  • Diversifying Product Base
  • Cost Savings & Sourcing Efficiencies
  • Strategy and Planning
  • Diversifying Customer and Supplier Bases
  • End-Market Expansion
  • Organizational Structure Optimization
  • Capital Structure Management
  • Add-on Acquisitions
  • Adding Valuable Board Members
  • Incentive Alignment

    • A Multi-Phase Approach

    RCP employs a phased approach to our underwriting process, which includes input, collaboration, and active, dynamic discussion with every member of our team.

    1.

    Initial Filter:

    Review the deal to ensure it meets our minimum criteria requirements.

    2.

    Secondary Filter:

    If it fits our criteria, conduct initial diligence with the Seller to gather more intel.

    3.

    Modeling:

    Model the deal to see how our returns could look given certain capital structures and valuation.

    4.

    IOI Submission:

    Assuming our model yields an attractive potential investor return profile; submit an IOI.

    5.

    Pre-LOI Diligence:

    Conduct more in-depth meetings with management and dive deeper into operations.

    6.

    LOI Submission:

    Assuming all goes well with the follow-up diligence, submit an LOI.

    7.

    Due Diligence:

    RCP conducts an extensive due diligence process to thoroughly vet the acquisition target.

    8.

    Closing/RVA™:

    If LOI is chosen work to close the deal and begin portfolio monitoring / RVA™ initiative.

    Growth Strategies

    A private equity deal can provide multiple approaches to growth. We can assist you with any type of growth, including these typical scenarios:

    • Provide liquidity to diversify wealth that was previously concentrated in one business
    • Partner with management teams to develop and implement strategies for growth
    • Support succession planning and talent pipeline development to bolster internal leadership
    • Enhance business operations with new systems, processes, and procedures

    Our Focus

    Lower-middle-market companies make up a generally underserved market in terms of private equity transactions: not big enough to attract “big deal” firms, yet too established for venture capital.

    We would know—we’ve worked extensively with and for companies in this category throughout our careers.

    That’s why we’re best positioned to help ensure the best possible outcomes. This is our sweet spot.

    Our Target Industries

    FinD out how we are different

    Our Investment Criteria

    • $5.0M+ trailing 12-month (“TTM”) revenue
    • $1.0M minimum TTM EBITDA
    • 10%+ EBITDA margins, or probably path to 10%+
    • Strong historical and sustainable financial performance
    • Positive free cash flow
    • Ability to operate with leverage
    • Capable management with a desire to continue with the operation post close

    Who We Partner With

    We invest in high-quality companies that have mutually identifiable opportunities for improvement.The business characteristics we look for include:
    SECTOR LEADERSHIP
    with established, defensible products and services
    OPERATIONAL EFFICIENCY
    with sound processes and procedures
    ENGAGED MANAGEMENT TEAMS
    with entrepreneurial spirit and drive

    Connect with Us

    If you would like us to review your investment opportunity, please reach out to us.

    Keith Carlson

    CEO and Managing Partner

    (859) 445-2223

    KCarlson@RCPprivateequity.com

    Wes Goebel

    Managing Director

    (312) 560-6940

    WGoebel@RCPprivateequity.com

    Reeve Hoover

    Associate

    (513) 205-0724

    RHoover@RCPprivateequity.com

    Private Equity ReCaP

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    Private equity investments for
    lower-middle-market companies

    © 2022 Roebling Capital Partners. All Rights Reserved.

    Company Name
    Longstreth Sporting Goods

    Website
    longstrethfieldhockey.com

    Location
    Philadelphia, PA

    Categories
    Active, Value-Added Distribution

    Date of Close
    August 31, 2023

    Longstreth Sporting Goods

    Longstreth Sporting Goods is a value-added, omni-channel women’s field hockey equipment distributor that carries impressive brand equity and name recognition in the sector. The Company employs 20 full time employees and has been committed to supporting the development of domestic field hockey for over 40 years. The Company’s omni-channel sales approach boasts revenue streams from E-commerce, Wholesale, Group Sales, and Retail customers. 

    Investment Thesis

    • Incredibly strong business model boasting high margins
    • Impressive management team (including middle management)
    • Opportunities for expansion into other sports and internationally
    • Longstreth’s position as the key player in a niche market
    • A very strong risk-adjusted return profile  

    RVA™ Approach

    • Investing in eCommerce infrastructure to facilitate continued eCommerce revenue growth
    • Fragmented market prime for inorganic growth
    • Enhancements to operational capabilities to drive further efficiencies
    The Porch Swing Company

    Company Name
    The Porch Swing Company

    Website
    theporchswingcompany.com

    Location
    Tampa, FL

    Categories
    Active, Consumer Products

    Date of Close
    February 18, 2022

    The Porch Swing Company

    The Porch Swing Company is one of the largest ecommerce retailers of porch swings and outdoor patio furniture in the U.S. The company’s products are superior-quality, easy-to-assemble, Amish-crafted outdoor furniture, including porch swings, swing beds, gliders, rocking chairs, and more.

    Transaction Dynamics
    Partnership with the founder to recapitalize the business and position it for future growth. Additionally, RCP partnered with Cincinnati-based operating partners to bolster the day-to-day operational management function. Both the founder and the operating partners made notable investments in the company as part of the transaction.

    Investment Thesis
    • Elegant business model and value proposition that enable the company to scale easily and rapidly, without being burdened by significant warehousing space or inventory constraints
    • First-mover advantage and strong barriers to entry given legacy relationships with high-quality, reliable, Amish craftspeople
    • Opportunity to easily expand product offering and optimizing sourcing

    RVA™ Approach

    • Investing in R&D to expand product offering and reduce seasonality
    • Improving systems and processes through implementing new technologies
    • Bolstering management infrastructure with key personnel additions
    • Accelerating growth via meaningful investment in sales, marketing, and advertising

    Company Name
    Teron Lighting, Inc. (TLI, LLC)

    Website
    teronlighting.com

    Location
    Cincinnati, OH

    Categories
    Active, Light Manufacturing

    Date of Close
    April 16, 2021

    Teron Lighting

    Cincinnati-based TLI, LLC is a nationally recognized leader in manufacturing energy-efficient, environmentally friendly lighting products. With over 40 years of experience in the design and manufacture of commercial-grade lighting fixtures, TLI is positioned for substantial growth in product and market initiatives.

    Transaction Dynamics
    RCP provided a solution to the legacy ownership group whereby they could transition out of the business and retire. We partnered with new and existing management, who have notable equity consideration, to align interests and propel growth into the future.

    Investment Thesis
    • Compelling value proposition given the TLI’s ability to produce bespoke, American-made products, which are increasingly rare in the sector
    • Strong national manufacturers’ representative network
    • In-house testing and engineering capabilities
    • Diverse end market and customer base
    • Multiple avenues of growth yet to be pursued
    RVA™ Approach
    • Top-grading management
    • Improving systems and processes
    • Investing further in engineering capabilities
    • Pursuing add-on acquisitions
    • Initiating a full-scale, ongoing marketing campaign to bolster the brand

    “My brother Michael and I wanted to ensure that the company, and every employee, are protected through this transition. I am happy to have Roebling behind us because they will stand behind the growth and the team.”

    – David Bellos, Co-owner and Legacy CEO
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    All Claims Repairs & Consultants

    Company Name
    All Claims Repairs, LLC

    Website
    allclaimsrepairs.com

    Location
    Deerfield Beach, FL

    Categories
    Active, Business Services

    Date of Close
    December 20, 2020

    All Claims Repairs

    All Claims Repairs is a licensed and insured general contractor specializing in water extraction, mold remediation, and water and fire damage restoration. The company also provides consulting services such as expert testimony and umpiring services to litigated claims. The company works with residential and commercial property owners, insurance companies, and insurance claims professionals to evaluate and restore damaged properties.

    Transaction Dynamics
    Partnership with the existing owners to recapitalize the business to accelerate growth. The owners/management made a significant investment in the company as part of the transaction.

    Investment Thesis

    • Unique value proposition in the industry, providing a full-service offering including both consulting and restoration services to key markets in Florida
    • Strong brand equity in the market
    • Nimble, flexible operations that enable the company to provide a multitude of value-added services to a diverse array of customers
    • Recession-resistant, non-cyclical business model

    RVA™ Approach

    • Meaningful investment in the sales and marketing function to further diversify end markets
    • Adding key management members
    • Adding valuable advisory board members

    “When we decided to expand our services, we went looking for a financial partner who could help us get to the next level. Roebling’s philosophy mirrored ours. They approached the partnership with a focus on maintaining our culture and preserving our legacy while we collectively push toward expansion into new territories. We are extremely excited to work with the Roebling team to take All Claims to the next level of growth.” ”

    – Tony Allogia, President
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    Chemlock Nutrition Logo

    Company Name
    Chemlock Nutrition

    Website
    chemlocknutrition.com

    Location
    Cincinnati, OH

    Categories
    Active, Value-Added Distribution

    Date of Close
    June 14, 2021

    Chemlock Nutrition

    Chemlock Nutrition formulates and provides high-purity, specialty feed additives for end-use in the livestock feed industry. Since entering the industry in 2013, Chemlock is one of the fastest-growing feed additive and ingredient companies in the U.S., having more than tripled its revenue in the last three years.

    Transaction Dynamics
    Partnership with the founders/owners to recapitalize the company and position it for sustained long-term growth. The founders made a significant investment in the company as part of the transaction and will continue in their existing capacity going forward. 

    Investment Thesis

    • The company takes a chemistry-first approach, enabling it to possess a strong position in the market, primarily from a product quality and innovation perspective
    • Attractive growth story, value proposition, and management dynamics
    • Expansive and diverse end markets, some of which are untapped
    • Meaningful continued equity and operational participation from the founders

    RVA™ Approach

    • Enhancing systems and inventory management
    • Expanding proprietary product offering through concerted, meaningful investment in R&D
    • Further diversifying customer and end-market base
    • Augmenting the sales and marketing function

    “Our business is growing so rapidly that it has outgrown the size of our team. With the addition of outside capital, we can fund more research and staff that will help us close the gap between current meat/dairy production limitations and evolving consumer demand/climate change.”

    – Kris Mehan, COO
    Learn More