Investment Criteria

Birchwood Capital focuses on investments in the Lower Middle Market with corporate revenues up to $200 million. Our investment focus is on businesses that require particular expertise, present structural barriers to entry/competition and when combined with the mission-critical nature of their services, command pricing power underpinning a favorable investment risk-return profile.

SECTOR FOCUS

  • Automotive (New Car Franchises)
  • Warehousing / Self Storage

  • Wholesale Fuel Distribution

TARGET INVESTMENT SIZE

  • Businesses with up to $10 million of EBITDA

  • Add-ons of any size

COMPANY CHARACTERISTICS

  • Strong Customer Value Proposition
  • Differentiated Service or Product Offering
  • High Customer Retention Rates & Recurring Revenue Elements
  • Growing End Markets
  • Recession Resistant Demand
  • Opportunity to Apply Operational Expertise
  • Attractive Profit and Cash Flow Margins
  • Complex situations that would benefit from operational value-add

GEOGRAPHY

  • North American headquartered

TRANSACTION TYPES

  • Control Buyouts
  • Leveraged buyouts (LBO’s)
  • Majority Recapitalizations

  • Corporate Divestures

  • Family and entrepreneur owned businesses

  • Public Company Take-Privates

  • Partial Shareholder Liquidity Events

OTHER

  • Birchwood Capital welcomes investment proposals and referrals from business owners, advisors, and intermediaries. As appropriate, we are happy to pay reasonable referral fees.