IGP invests in companies with the following characteristics:
- Manufacturing Sector
- History of Profitability
- Strong Market Positions
- $30 million - $150 million in Revenue
IGP strongly favors manufacturers of "intermediate" products (i.e. products that are sold to other businesses rather than directly to consumers). In addition, IGP prefers to invest in established companies or divisions, with focused lines of business.
PREFERRED INDUSTRY SECTORS
Sectors that are of particular interest to IGP include the following:
- Industrial components and equipment
- Electrical and electronic equipment
- Process instrumentation and controls
- Analytical instruments and measuring devices
- Fluid control, filtration and pumps
- Specialty chemicals, adhesives and coatings
- Plastics and synthetic materials
- Healthcare and safety equipment
- Manufacturing services and testing
Management Buyout (MBO) -- Managers of standalone companies, subsidiaries or divisions pursue an MBO in order to increase their influence in the development of a company and the implementation of its strategy. Private equity firms such as IGP typically partner with management to provide the equity portion of the acquisition financing. The quality and industry expertise of the private equity firm is often crucial to the success of the MBO.
Corporate Divestitures -- A corporate divestiture occurs when a large company divests a division that is non-strategic or a division that might be worth more as a separate entity than as part of the parent company. IGP partners with the management teams of these non-core divisions to acquire and revitalize them by establishing proper management incentives and by providing access to capital, operating and strategic resources.
Private Companies/Family-Owned Companies -- A significant number of private and family-owned businesses have reached a stage where the founder and the next generation owners and/or management have different goals and objectives. These founders often prefer to work with a private equity firm like IGP that has significant industry experience and the flexibility to develop creative transaction and estate planning structures.
Co-Operative Divestitures -- Larger companies often develop proprietary products or processes that are non-core to their primary operations, but which divisional management believes have excellent prospects for future growth. In these situations it is often in a parent company's best interests to partner with an outside investor to help exploit the opportunity, while retaining some upside alongside a capable and trusted private equity firm. In these instances, management of the division would partner with IGP to acquire a majority stake in the division, with the corporate parent retaining a meaningful minority ownership position.
Growth Financings -- Many private companies seek an equity partner to finance growth opportunities, as well as to provide strategic and operating assistance in executing their expansion plans. In these situations, IGP will provide equity to a company to enable it to develop new products, make acquisitions, expand its customer base or add productive capacity.
Recapitalizations -- Owners often complete a leveraged recapitalization of their business to provide liquidity to shareholders. A recapitalization is often appealing to business owners because they can monetize part of their ownership position, while at the same time retain a significant continuing interest in the business.