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Partnership
with Management. Main Street’s primary consideration for investing in any business is the quality and commitment of the management team. The firm seeks experienced successful teams that have worked together for some time and are personally and financially committed to their business.
Transaction Types. Main Street is primarily focused on owning controlling or minority interests in companies where the balance of ownership is held by their management teams. Past transactions have included privatizations, management buy-outs, the funding of growth capital and add-on acquisitions, and buy-outs of passive or unproductive shareholders.
Target Companies. Main Street invests in stable, growing operating companies in the Northeast with $10-75 million of revenue. The firm will consider almost any industry when the transaction meets the other criteria – although generally Main Street does not pursue start-ups, technology companies or turnarounds.
Good Citizens. Main Street backs good teams running good companies. By “good teams” in addition to being financially productive, we mean honest, thoughtful, giving and overall good citizens of their communities. By “good companies” in addition to being profitable, we mean environmentally clean, providing healthcare for all employees and strong community supporters. Main Street companies are not expressly “green” or follow specific rules of “corporate social responsibility,” but they are part of a greater solution – offering good jobs, positive growth and wise use of resources. In addition, we generally do not invest in companies that are not local to us and owned/controlled by their management teams. We believe the fact that a management team views its role as broader than simply the bottom line is a good predictor of capability and success – as well as an excellent predictor of interest in and capacity for true partnership.
Growth. Main Street helps to create growth in its portfolio companies by investing in businesses at an inflection point, providing access to capital and resources and working with management by providing leadership and advice from the Main Street Guild on many aspects of the business including growth through acquisitions and new business opportunities.
Value-Added. Main Street’s goal is to invest in companies to which the firm can add value through the expertise of its professionals and the resources of the Guild. Main Street has been successful in creating multiple expansion by purchasing companies at lower multiples due to size, limited competition and flexibility, and successfully exiting at higher values driven by both internal growth and growth via add-on acquisitions.
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