We pride ourselves on adhering to a focused and dedicated investment approach.
Edgewater is seeking platform acquisitions that meet the following financial criteria:
- Minimum revenue of $10 million;
- Gross margins exceeding 20%; and
- EBITDA exceeding $2 million with EBITDA margins exceeding 10%.
- Add-on acquisitions - no size constraints but must have positive operating cash flow/EBITDA.
Industries of particular interest are:
- Specialty Chemicals - Edgewater has particular expertise with transactions in the specialty chemical industry. Through its investment experience, and dedicated operating partners, Edgewater maintains a strong understanding of specialty chemical opportunities.
- Pharmaceuticals - Edgewater is interested in acquiring companies with proprietary products, superior quality, and proven technologies in the pharmaceutical industry.
- Specialty Materials - Edgewater is looking to acquire companies whose products are purchased for their performance characteristics.
- Industrial Engine Components - Through its portfolio Turbonetics Holdings, Edgewater has strong interest in engine component businesses. These include products serving the aerospace, automotive (primarily aftermarket), mining, construction equipment, etc.
- Tangible, high barriers to competition.
- Proprietary products, formulations, systems and/or processes.
- Leading, defensible market share positions.
- Strong management team with a successful track record.
Types of Transactions
- Corporate spinoffs, divestitures.
- Closely-held, family businesses.
- Management led buyouts.
Typical Deal Structure
We work with sellers to structure a transaction that values both the current and future growth of the business. As a result, Edgewater frequently utilizes a combination of the following forms of consideration in its acquisitions:
- Cash at closing;
- Seller participation in the post-transaction entity; and/or
- Earn-out payments contingent on the future performance of the business.