Established Enterprises
Crown's criteria is not industry-specific. We have successfully invested in manufacturing, distribution and service businesses. We're especially interested in businesses with a defensible niche, or who have proprietary knowledge, designs, precesses or technology.
Proven Performance
We prefer consistent or growing earnings and cash flow for the past three years; rapid growth is not required. We will consider troubled companies — if the price is fair and we can develop a credible plan to turn the company around.
Technology
We consider both low- and medium-technology companies. We will consider high-technology companies if the business plan has been proven by growing sales and profitability.
Type of Company
We purchase private companies, plus subsidiaries and divisions being divested. We will invest investing in public companies that need capital for acqusisiton or to promote growth.
Type of Transaction
We will consider a purchase of assets or stock, or a leveraged recapitalization where the seller retains a significant level of equity after the acquisition. We're especially interested in management and growth buyouts.
Crown will also invest in service businesses with a smaller asset base but that can guarantee repeatable sales and profitability.
Strong Balance Sheet
We prefer businesses with tangible assets, high liquidity, little debt and fast-turning receivables and inventories. We're especially interested in companies with excess, hidden or undervalued assets.
Purchase Price
While our focus is on companies valued at $10-250 million, we also make larger acquisitions in partnership with institutional investors.
We're also unusually flexible in structuring the components of a purchase price to meet the tax, estate and other needs of the seller. Those components can include cash at closing; a promissory note; and earnout, incentive payments and equity in the buyer.
Location
Crown has no geographic reference but works with national and international management teams.
Buy-and-Build Acquisitions
We are particulary interested in companies we can use as a basis acquire other companies.
Other Buyout Firms
We regularly partner with other buyout firms or institutions to help close a transaction. We can particulary add value when we help with placing acquisition financing, due diligence and finding more companies to participate in a buy-and-build strategy. We're highly active and hands-on in all of our acquisitions before the closing.