Middle Market Equity Partner for Business Enhancement

A middle market equity partner can be a game-changer for businesses looking to enhance their operations and growth. They typically invest in companies with revenues between $50 million and $500 million, providing access to capital, expertise, and networks.

Middle market equity partners can help businesses scale more efficiently, with some investing in as few as 5-10 companies per year. This level of selectivity allows for more focused support and guidance.

By partnering with a middle market equity partner, businesses can gain access to a range of benefits, including strategic guidance, operational improvements, and access to new markets and customers.

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We're looking for companies with a strong framework, talented individuals, and a drive to succeed, which enables them to outperform in their industry.

We invest in opportunities that have a good foundation to become leading companies, across various industries.

We're interested in partnering with businesses that have the potential to grow and thrive, and we're willing to invest in them to make it happen.

Our extensive network of industry veterans, experienced Operating Partners, and executive talent provides valuable support to our portfolio companies, helping them drive sustainable, long-term growth.

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We take a collaborative approach to working with our middle market equity partner, focusing on building long-term relationships that drive growth and value creation. By doing so, we're able to provide tailored support that addresses the unique needs of each business.

Our team has extensive experience working with middle market companies, with a deep understanding of the challenges and opportunities that come with this stage of growth. We've found that a flexible and adaptable approach is key to success, allowing us to pivot and adjust as needed to meet the evolving needs of our partners.

At the core of our approach is a commitment to transparency and open communication, ensuring that our partners feel informed and supported every step of the way. This enables us to build trust and foster a strong partnership that drives results.

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Middle market companies offer significant opportunities for operational improvements. Private equity firms can leverage these opportunities to drive value creation.

Implementing technologies is a key strategy for operational enhancement. This can help streamline operations and increase efficiency.

Streamlining operations can be achieved through process automation and elimination of unnecessary steps. This can lead to cost savings and improved productivity.

Expanding into new markets is another opportunity for operational enhancement. This can be achieved through strategic partnerships and market research.

Private equity firms can also focus on improving supply chain management to increase operational efficiency. This can help reduce costs and improve delivery times.

By implementing these strategies, private equity firms can drive value creation and achieve significant returns on investment.

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At our company, we've found that flexibility and agility are key to success in today's fast-paced business environment. This is particularly true for middle market companies, which are often more nimble than larger firms.

Their agility allows them to quickly adapt to market changes and capitalize on emerging opportunities. This is a crucial advantage, as it enables them to innovate and pivot their strategies effectively.

Middle market private equity refers to investments in companies that generate annual revenues between $100 million and $1 billion and have EBITDA ranging from $15 million to $75 million.

The investment process in middle market private equity involves several critical steps, including deal sourcing and due diligence, valuation, and deal structuring.

Private equity firms often use complex analysis, such as comparable company analysis (CCA), to determine the value of a middle market company.

Deal structuring involves terms like purchase price, equity shares, and ownership transfers.

Private equity firms can tailor investment structures that accommodate the financial and operational needs of the business while ensuring adequate returns on their investment.

Common structures in middle-market PE transactions include leveraged buyouts (LBOs), management buyouts (MBOs), and growth capital investments.

High potential for returns is one of the benefits of investing in middle market private equity, due to the growth potential and operational efficiency of these companies.

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Portfolio diversification is another benefit, as smaller deal sizes allow private equity firms to spread their investments across multiple companies, mitigating risk and enhancing portfolio performance.

Active management is also a key benefit, as middle market investments often allow for more active management and operational involvement, which can drive significant improvements and value creation.

Private equity firms often hire operating partners to advise their portfolio companies, and sometimes these partners step in to take on full-time operational roles within the business.

Here are some notable exits in middle market private equity:

At Graham Partners, we take a structured approach to investing in middle market companies. Our process involves identifying potential investment opportunities through extensive research and relationship-building.

We conduct thorough due diligence to assess the financial health and operational efficiency of target companies. This critical step helps us determine if a company is a good fit for our investment strategy.

Our team of professionals uses complex analysis, often including comparable company analysis (CCA), to determine the value of a middle market company. This ensures we make informed investment decisions.

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Once we've identified a potential investment, we structure the deal to include terms like purchase price, equity shares, and ownership transfers. This careful planning helps us achieve our investment goals.

Here's an overview of our investment process:

We've successfully executed our investment process with 4 fund strategies, including a strategic capital investment in Team Select Home Care in May 2023. We've also divested several companies, including Giraffe Foods and Mercer Foods in December 2021, and Paragon Films to Rhône Group in December 2021.

Middle market companies have shown remarkable resilience during economic downturns, adding jobs while larger companies were cutting back.

Private equity firms are uniquely positioned to drive growth in middle-market companies. They can take a longer-term view, focusing on sustainable growth and operational improvements.

Private equity provides capital not just for growth initiatives, but also for streamlining operations and improving technology infrastructure. This is crucial for middle-market companies that often face capital constraints.

Private equity firms bring industry expertise and market knowledge, often with experienced management teams and a network of industry experts. They can guide middle-market companies through complex market landscapes.

Many PE investors use deep operational expertise to optimize processes, reduce costs, and improve efficiencies. This hands-on management can be particularly valuable for family-owned or founder-led companies.

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Middle market companies have shown remarkable resilience during economic downturns, adding jobs while larger companies were cutting back. This resilience, coupled with a strong growth trajectory, makes middle market firms attractive to investors.

Private equity firms are uniquely positioned to drive growth in middle-market companies, taking a longer-term view that focuses on sustainable growth and operational improvements. They provide capital not just for growth initiatives, but also for streamlining operations and improving technology infrastructure.

Private equity firms bring industry expertise and market knowledge, often having experienced management teams and a network of industry experts who can guide middle-market companies through complex market landscapes. This strategic guidance can be particularly valuable for family-owned or founder-led companies that may not have the resources to invest in professional management teams.

Many private equity investors use deep operational expertise to optimize processes, reduce costs, and improve efficiencies, which can be particularly valuable for companies that may not have the resources to invest in professional management teams.

Private equity firms typically focus on realizing a return on their investments over a 4-to-7-year period.

They are strategic about when to exit an investment to maximize its value. This might involve preparing a company for a public offering.

Private equity firms are focused on exit strategies, which is a critical aspect of their role in middle-market M&A.