Prodos seeks companies with leading or niche market positions and (typically) in need of a more institutional business framework. We partner with owners and back management teams to build long term economic value.
We see ourselves as additive partners (as opposed to active day to day managers). We seek to create value through our strategic, business development and institutional capabilities and network.
Transaction Themes:
- Entrepreneurs and management teams that are seeking to reach the “next” level of success.
- Family owned companies lacking a clear succession plan and in need of some level of monetization for estate planning purposes.
- Underachieving companies due to operational and/or balance sheet issues.
Financial Profile:
- Sales of at least $10 million.
- Minimum Gross Profit Margins of 30%.
- EBITDA of $2 million and above (core target between $3 million and $10 million).
- Cash flow neutral or positive and low capital intensive businesses.
Capital Provided:
- Equity and debt.
Target Investment Horizon:
- 5 – 15 years.
Types of Transactions Include:
- Buyouts and leveraged recapitalizations.
- Growth and expansion capital.
- Corporate divestitures.
- Restructurings and/or special situations.
Industry Profile:
- Industry agnostic.
- Not active in high-tech or bio-tech.
- Niche/value added businesses.
- Recurring revenues.
- Fragmented industries / consolidation opportunities.
Geography:
- Primary targets are North America and Western Europe.
- Rest of the world (opportunistically).