A Strategy Driven Private Equity Firm

Our Investment Criteria

The Watermill Group invests in U.S. or Canada-based companies which require operating, strategic and capital resources to grow. Such opportunities may take the form of an operating turnaround, financial restructuring or strategic repositioning. While some investment candidates may have experienced sales and profitability decline, others will be growing modestly but need help to capitalize on larger opportunities. In any case, Watermill’s interest in investment will be dictated by a compelling strategy that is crafted in conjunction with current managers and future strategic partners.

Typical Acquisition Screening Criteria

  • $40 to $500 million in revenues
  • Will consider below $40 million in revenues for an extraordinary investment opportunity
  • Strategic acquisitions for portfolio companies

Transaction Types

  • Carve outs and divestitures of non-core businesses
  • Private sales (founder, family, revitalization management)
  • Complex transactions
  • Challenged industries
  • Opportunities for strategic revitalization
  • Potential to improve operating performance
  • Opportunistic value investments
  • Distressed, turnaround and other special situations
  • Prepacked bankruptcies, section 363 sales, and stalking horse bids
  • Balance sheet restructurings
  • At risk auctions

Business Types

  • Manufacturing
  • Value-added distribution
  • Business services

Industry Experience

  • Metals
  • Rubber and plastics
  • Paper
  • Packaging and containers
  • Chemicals
  • Food products and services
  • Building products and services

Business Types Not Favored

  • Fashion
  • Leading edge technology
  • Other industries characterized by short product life cycles or binary outcomes

Performance

While it is not necessary for a potential acquisition target to have a recent history of profitability, we look for situations in which we can understand and get behind the business plan to achieve sustainable profitability.

Management Issues

Watermill will consider opportunities that require the introduction of new management. We have been successful at partnering with existing management teams, augmenting management teams with Watermill principals, and recruiting new teams into our portfolio companies.

Intermediaries

Watermill will pay intermediary and finder fees.