Micro-Cap Buyout: Management Augmentation or Transition
Acquisition and scale-up of businesses with $2 to $6 million of EBITDA
Acquisition of firms with established management bench strength and EBITDA > $6 million
Special Opportunities and Impact Investments:
Special Situation – Underperforming company with an identifiable path to stable free cash flow backed by a tangible asset base.
Impact Investment – The company has a credible plan to create significant number of livable wage jobs over the forecast horizon in a highly distressed community and incorporates other social benefits (e.g., renewable energy, energy efficiency, workforce housing, health & wellness access, healthcare education).
40|73 Capital will opportunistically entertain special opportunity and impact investments that exhibit the right combination of valuation, deal structure, social benefits, special tax treatment, growth & return prospects, and other attributes that mitigate the inherent challenges of these investments. 40|73 Capital will take an industry-agnostic approach to special opportunity and impact investments.
Revenue > than $10 million
EBITDA: $2 to $12 million
PREFERRED BUSINESS PROFILE
Recurring revenue and/or high visibility into future cash flow generation, and diverse and/or stable customer base
Identifiable organic and inorganic growth opportunities
US-based firms with a primary focus on the northeastern US.
40|73 Capital seeks investment opportunities where we generate value, beyond capital, by augmenting or transitioning management. We reinvigorate our companies with entrepreneurial energy and expertise that will result in the next level of growth.