KT Capital seeks qualified acquisition candidates from the manufacturing, distribution and services sectors. Ideally, the candidate company will have stable and predictable historic cash flows with potential for significant growth, a reputable name, and a strong business model. KT Capital’s acquisition target criteria include the following:
- Southeastern United States geographic focus (except for add-ons to existing companies)
- Revenue of $5 million to $50 million
- Minimum EBITDA of $1 million or more (except for add-ons)
- In-place management or already identified succession/replacement management; who will co-invest their own capital along side of the Fund
- Established product or service in stable, growing market
- High probability of strong growth each year
- Sales of products or services that meet a business need, that can be differentiated from competitive offerings (non-commodity) and that serve a niche within a fragmented industry
- Reasonable opportunities to grow the business through geographic expansion, product line expansion, excess capacity, untapped customer segments, and/or channel expansion
- Reasonable opportunities to create efficiencies through process improvements, increased/enhanced utilization of technology, supply chain efficiencies, and/or channel expansion
- Resources that can be leveraged for competitive advantage including employees, physical assets, information, customer base, brand name, or intellectual property which should not be impacted by an ownership change
KT Capital takes a creative and flexible approach to private equity investment. Financing transactions in a sensible and prudent manner, we take into account the capital requirements necessary to meet the company’s growth and expansion plans and allow for a comfortable operating cushion to accommodate fluctuations in company performance.
We are able to act responsively, fund investments quickly and complete transactions with a high degree of confidentiality. We are well known in the financial community for our ability to close transactions in a reasonable timeframe. This is a result of KT Capital’s hands-on investment team, the extensive transactional experience of our team, and our ability to logically present our structures to our lender-partners.
We make a concerted effort to structure each transaction to meet the specific financial and personal requirements of each seller. An owner can generate maximum liquidity by selling all of his interest in the company, or alternatively, “take some chips off the table” while retaining a meaningful equity interest and management role in the company by partnering with KT Capital. Similarly, we can accommodate the wishes of an owner to have one or more key employees or family members participate in a KT Capital led transaction.