Parameters
1847’s mission is to generate superior risk-adjusted returns through the majority ownership of a curated portfolio of lower, middle market companies that are led by strong managers. Ultimately, 1847 seeks to derive value creation through prudently distributing annual income while growing its operating subsidiaries – versus financial engineering fostered by extreme leverage. As a result, we seek to own companies with founder-operators and management teams at the critical inflection point in their growth cycle. By focusing on acquiring companies with an underlying blueprint for growth, 1847 selects companies that present the greatest opportunities for long-term value creation underpinned by a defensible value proposition and perpetual reason to exist.
Company Characteristics
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Businesses headquartered in North America
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Revenues of at least $5 million
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Historical revenue growth rate of at least 5%
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Current year EBITDA of at least $1.5 million
Transaction Types
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Majority Recapitalizations: Providing owner-operators with significant liquidity while enabling them to retain significant minority ownership and operating control of their business
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Buyouts: Acquisitions of lower middle-market companies or divisions of larger companies that will benefit from an energized financial partner
Acquisition Size and Structure
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Total enterprise value range of $10 – $50 million
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Control, Majority Investments ONLY
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Flexible structures and securities to fit the needs of the company and its owners