Our Strategy

Building Relationships for the long-term

Criteria

Candidates should feature a diverse customer base, meaningful growth prospects (through either internal growth or through add-on acquisitions), and should enjoy strong and defensible market share in their regional or national marketplace.

EBITDA

Mangrove invests in stable and profitable service companies, manufacturers, and value-added distributors headquartered in the U.S. or Canada with $3-$10 million of pre-tax profits.

Revenues

For new investments, rather than add-on acquisitions, Mangrove typically invests in companies with revenues from $10-$100 million.

Transaction Size

Mangrove’s transactions are typically from $15-$75 million in deal size.

Transaction Types

Mangrove invests and has extensive experience in Recapitalizations, Family Succession Recapitalizations, Management Buy-Outs, Management Buy-Ins, Industry Consolidations, and Select Underperformers.

Industries

Manufacturing
  • Mission critical (got to have vs. want to have)
  • Typically not solely tied to major capital expenditures
  • Positive to have a service component or potential thereof
  • Often products with higher levels of engineering content and/or customization

Examples:

  • Test & measurement equipment
  • High margin consumables & disposables
  • Specialty chemicals or formulated products
  • Defense (not closely tied to headcount)
  • Aerospace (for stable platforms)
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Enthusiast Consumer
  • Enthusiast driven customer base
  • Non-commodity orientation
  • Diverse customer base (low concentration to big box retailers)
  • Not fad or fashion oriented

Examples:

  • Performance automotive aftermarket
  • Hunting, fishing, etc.
  • Health and fitness products
  • Adventure related sporting goods (camping, kayaking, climbing, etc.)
  • Medical related products (not tied to Medicare/Medicaid)
  • Other esoteric enthusiast sport niches
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Industrial Services
  • Mission critical
  • Often services that preserve or maintain valuable fixed assets and/or improve the efficiency or quality of customers operations
  • Often performed in the field
  • Strong safety record is often a requirement
  • Technical know-how required (not everybody with a truck can compete)

Examples:

  • Erosion and corrosion prevention
  • Non-disruptive testing
  • Technical cleaning in industrial environments
  • Maintenance and repair services
  • Other service niches with high value-add, saving customers time and money
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