MERK has historically focused on various size companies working with the entrepreneurial owners, divisions of large corporations as well as businesses facing significant strategic challenges. Our investment focuses in on several areas where we bring a significant amount of expertise within these particular industries including packaging, consumer products, food, building materials, aerospace and business services. We seek investments in companies that meet the following investment criteria: Industry Segments:
- Manufacturing: niche manufacturing companies that make customized products with short order and production lead times and generate gross margins in excess of 25%.
- Distribution: companies with value-added branding, merchandising or unique processing with gross margins in excess of 20%.
- Business Services: Select service providers with a unique and value-added service offering, deep customer relationships, high switching costs and a scalable business platform.
- Technology: Companies that provide unique growth opportunities in emerging but established markets where the company growth strategy fits in with MERK’s entrepreneurial investment philosophy.
Transaction Values: $10 to $400 million
Revenues: $15 million to $500 million
EBITDA: $2 million to $50 million for platform companies. No minimum EBITDA for add-on acquisitions.
Geographic Preference: All platform companies must be headquartered in the United States. No geographic preference for add-on acquisitions.
- Private companies undergoing an ownership transition, recapitalization or requiring growth capital
- Corporate divestitures
- Strategic add-on acquisitions for platform companies
- Select financial restructurings or turnarounds
- Strategic growth strategy opportunities
Control: Not required (alone or with a compatible co-investor)