Rockmont is actively seeking stand-alone companies as well as companies that will complement existing portfolio companies. Rockmont's primary focus is on middle market companies with revenues of $5,000,000 to $200,000,000. Although we have the capacity to fund larger transactions, we believe that very few qualified buyers have the cash and ability to close transactions as smoothly and quickly as we have demonstrated in our target size range. Our investments generally fit into one of the following models:
These are companies with an existing track record and a strong potential for growth. We emphasize the following strategic factors when evaluating the potential acquisition of a growth company:
A quality management team. The most important ingredient in a transaction is a management team with a demonstrated track record of success that is properly motivated with equity incentives. Although we would prefer to back a qualified existing management team, we have the ability, when necessary, to assemble and put in place successful and experienced managers.
A sustainable competitive advantage. This should enable a company to generate attractive operating margins, earn a high return on assets and successfully defend their market position.
Market leaders. We believe strongly in the value of niche businesses and seek to acquire companies that are leaders in their market niche.
Special Situations and Companies in Transition
Rockmont's philosophy is to address the unique requirements of each constituency in an investment situation. Our backgrounds in operations, finance, capital markets and strategy, combined with our experience in hundreds of corporate transactions, allow us to approach situations with flexibility and creativity. The following are examples of situations which require customized solutions:
- Family business recapitalizations to meet the challenges posed by generational change, non-management shareholders seeking liquidity and sudden, estate related tax liabilities.
- Established companies positioning for the next stage of growth, whether internal or through acquisition.
- Quality management teams that are interested in the buyout of a subsidiary or division of a larger company.
- Sponsorship of private companies where Rockmont's capital, credibility, knowledge and contacts can provide access to both equity (IPO) and debt capital markets.
- Private and public companies that are in financial distress and need assistance in formulating and implementing plans to maximize shareholder value, including underperforming subsidiaries or divisions of larger companies.
- Parent companies with subsidiaries and divisions that no longer fit their strategic focus.