Investment Focus
RockWood invests in niche manufacturing companies, value-added distributors and specialty business service providers based in North America. We generally look for companies with the following characteristics:
- Sales ranging from $10 million to $100 million
- Sustainable cash flow (or EBITDA) of at least $2 million
- Proven management in most positions
- Meaningful growth potential
- A defensible market position
- Diverse base of customers without significant customer concentration
While we prefer to work with existing management teams, we are comfortable making investments in companies where the owner-operator is retiring or where key executives need to be recruited.
Types of Investments
We are flexible in our approach, and seek to structure transactions to meet the needs of selling shareholders, management teams, and key employees. The types of transactions that we typically pursue are outlined below:
- Management Buyouts. RockWood invests with management teams to acquire privately-held companies, divisions of larger companies and small public companies.
- Recapitalizations. RockWood provides owners of private businesses with the opportunity to achieve meaningful liquidity while retaining significant ownership and operational control of the business.
- Growth Equity Investments. RockWood makes select equity investments in companies seeking to finance growth.
- Non-Control Investments. RockWood makes select equity co-investments along side other like-minded investors in lower middle market companies.
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