Our Thesis
25,000
US manufacturing firms owned by baby boomers, 75% of which have no formal succession plans
$230B
US manufacturing construction spending, near all-time highs
We believe in the reindustrialization of America through the growth of legacy lower-middle-market businesses with investments in automation, top-line growth, competitive performance improvement, overall strategy and org redesign.
Target Businesses
- Legacy founder and family-owned, corporate orphans, special situations, joint ventures (JV)
- $10-100m revenue
- $1-5m EBITDA
- Indefinite time horizon
Industries
- Manufacturing and support services
- Core industrial, automotive, aerospace, defense, marine, energy, materials, medical device, construction
There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.
~ Henry Ford
Our Focus
We are group of operators backed by a family office focused on building and growing legacy North American-based manufacturing and service businesses, creating long-term value for owners through acquisition, investment, partnership, operational excellence and strategic planning.
Our Mission
Preserve the legacy of US business owners to build on the successes they have created
Create optionality and value for entrepreneurs who aren’t satisfied with what other buyers have to offer
Build and restore competitive manufacturing and service businesses for the US economy
Provide community and career opportunities for middle-class America
Our Principles
Operational Excellence
We are core business operators who believe in manufacturing excellence and best practices.
Ownership
We value hard work, results, and output
Legacy
We stand on the shoulders of those who came before us
Topgrading and Retention
Purpose and reward are the pillars of attracting and retaining topgrade talent
Growth and Innovation
To move forward we must adapt to our changing environment
Where we play
Advisors & Consultants
No control or accountability for results
No investment, no skin the game
Short-term, non-sustainable impact
Strategic ‘art of the possible’ thinking, lacks tangible results
Short-term cash flow drain, high cost to in-house alternatives
High-priced and often lack wide range of subject matter experts to solve specific, complex problems
American Legacy Operators
Comfortable with minority investment to build trust
Leverage used for growth, not for funding transactions
Prioritize strategic growth and foundational improvement for repeatable future performance
No investment horizon, focused on long-term, sustainable enterprises
Cash-flow and dividend focused
Captive 350+ global network of operating and technical experts with at-cost support
Private Equity
Majority or full-control typically required
Heavy leverage investment model
Short-term time horizon to re-sell business
Focused on short-term ‘value creation’ cost cuts to maximize investor returns
Exit-EV mindset rather than sustainable cashflows / dividends
Lack captive internal operations and portfolio support teams
Our Background
We are a family-led collection of expert operators, leaders and investors committed to the long-term growth of core US-manufacturing and service firms.
We were born and raised in the Midwest and stand on the shoulders of our ancestors: immigrants who came to the US to achieve the American Dream and built their careers in manufacturing plants.
We have spent our entire careers working in and supporting companies in the industrial, automotive, aerospace, construction and niche service markets.
We started, ran, and sold our own businesses… and regret it every day.
We are not private equity investors. We are operators who have an indefinite time horizon looking to preserve and grow sustainable, successful businesses.
Best in Class Operations: Our Core Principle
We are family-oriented, community operators, highly experienced in owning, growing and running complex manufacturers to produce exceptional results.
Operations
Equipment, processes, and people are the core revenue engine of a business; deep expertise in continuous improvement to delivery best practice performance
Operating System
Organizational performance management using results, data, structure, discipline, team empowerment and problem solving
Strategic Advisory / BoD
Commercial, operational, technology subject matter experts and strategic advisors with focus on middle market businesses
Leadership
Internal and external full-time, fractional, and interim leadership and management, from the C-suite to the plant floor
Automation
Strategy, system design, hardware, software, controls & integration, and project management experts
Procurement
Extensive experience in design-for-manufacture, value engineering, and experts in low-cost sourcing from Mexico and Asia
Quality
Experts in best practice quality performance, industrialization, program launch, and quality systems
Why it’s beneficial to business owners
Generate Liquidity
Allow owners to take chips off the table and participate in upside with an “enablement” partner
Limited Deal Expenses
Captive team to support transaction fees (ODD, financial, legal, etc.)
and post-acquisition management (operations, automation, financial, HR)
Emphasis on Long-Term Stability
Retention of founder and key leadership teams, including equity incentives for non-participating existing employees
Focus on Growth Strategy
Realistic growth strategies leveraging network and experience vs financial engineering or traditional roll-up strategies
Personal Legacy and Commitment
Preserve what you have built for a sustainable future ahead
Our expertise enables businesses to achieve their full potential across all major performance levers
Our Goals
Made in America.Operated in America.Enhanced in America.
Preserving your legacy
Preserving the heritage and culture of your business
Preserving and upskilling your US labor
Preserving the relationships with your customers and employees
We are your long-term business partner
Ready to elevate your company performance to the next level? Don’t hesitate to give us a call or send us a message!