Equity Buyout Fund

Overview

FMMC Buyout Fund makes equity investments in profitable, privately-owned businesses, primarily based in Canada and the northeastern United States, that exhibit robust growth potential in the medium-to-long term.  The opportunities sought have Enterprise Values of between $5 and $50 million in which FMMC’s ownership stake is meaningful -generally 25% to 100%, and its involvement is viewed as a value-enhancer by the existing owners. FMMC seeks to understand the needs and objectives of the current owners and tailor a solution to meet those needs, while simultaneously offer an attractive, risk adjusted return for its investors. FMMC would either own a minority stake in partnership with an existing owner-operator or buy a majority stake in the business, enabling the owner-operator to ultimately retire from active day-to-day of operations.

FMMC’s ideal candidates for investment are fall into two categories: (i) thriving businesses with a complete senior management team that only requires financial capital to realize the company growth objectives; and (ii) a business with the need for both capital infusion and augmented expertise within the senior management ranks.

What differentiates FMMC from other private equity funds is its access to a deep pool of Operating Partners, all of whom are senior executives and former business owners. FMMC’s Operating Partners, have senior management experience across a broad spectrum of industries and professional disciplines, including former CEOs, CFOs, CTOs and COOs. Depending on the needs of the portfolio company, one or more of these seasoned executives can be added to the portfolio company’s senior management team ranging anywhere from one day a week to full time. They would also make a personal investment in the portfolio company, in conjunction with FMMC, as we all work toward building a strong, growing company together.

What differentiates FMMC from other private equity funds is its access to a deep pool of senior executives and former business owners across a broad spectrum of industries and professional disciplines. FMMC will only invest in companies where it can match the appropriate Operating Partner to the situation at hand. This individual must not only possess the requisite domain expertise, be it functional or industry specific, but also co-invest in the opportunity with the fund. Moreover, the Operating Partner would play a key role in the company’s ongoing operations ranging from board representation to inclusion in senior management – as the situation dictates.

INVESTMENT CRITERIA

Profitability

Minimum trailing EBITDA of $1.5 million, and most typically between $2-5 million.

Preference for companies with an asset base in excess of current senior debt, but not strictly necessary.

Industry

Any, excluding real estate and natural resource exploration/extraction.

Geography

Canada-wide, USA from New England to Chicago where the business has some meaningful connection to Canada.

Target Cheque Size

$2 -10 million per opportunity.

Other

Defensible market position, manageable risks to the company’s cashflows and an ability to service its debt without the need for further growth.