Genki Capital is currently working on several searches in a wide variety of industries and fields. All of our searches have the following common themes:
QUALITY MANAGEMENT TEAMS
Good management teams are the building blocks of a successful company. Buyers are buying the people who have built the company. Our clients are interested in working with companies where management has demonstrated that they have the skills to lead the company through its various stages of development. Skill attributes should include sound technological knowledge and an in-depth understanding of the competitive environment in which they operate.
LARGE AND IDENTIFIABLE MARKETS
Buyers focus on businesses operating in markets with high revenue potential, where the demand for new solutions and services can grow rapidly.
Except in the case of special situation below, candidates should have developed a profitable business model that can be implemented in the near to mid-term.
Ideally looking for acquisition targets should have EBITDA between $4MM and $50MM. Preferred acquisitions will have a defensible position in the market.
Manufacturers of oilfield equipment should not have customer concentration with any single client not consisting of more than 30% of profitability.
Assets under management should be between $100MM and $500MM.
Brokers should have between $3MM and $50MM in annual commissions.
3PL / LOGISTICS
Acquisition targets should have solid management in place that is committed to remaining with the acquirer post-transaction.
EBITDA margins can be less than 10%. In addition, companies requiring capital infusion to clean up balance sheets will be of interest.
Branded and private label opportunities with revenues of at least $20MM.
Our client is a diversified healthcare provider and is looking to invest in a number of different services and products.
METALS AND MATERIALS
EBITDA should be at least $3MM with no customer concentration with any customer comprising more than 30% of profits.
Traditional enterprise software providers as well as SaaS. Acquisition targets should be profitable.
Service providers to the Petrochemical, Wood Products, Metal Manufacturers and Pulp and Paper industries with EBITDA of at least $4MM.