Mangrove Equity Partners is an uncommonly generous, fair, and effective partner to entrepreneurs across a wide variety of circumstances and transaction types. We put ourselves in the entrepreneur's shoes, communicate candidly and honestly as to how we propose to meet their objectives, and we work hard to serve their interests as much as our own.
We have extensive experience in Recapitalizations, Family Succession Recapitalizations, Management Buy-Outs, Management Buy-Ins, Industry Consolidations, and Select Underperformers.
Recapitalizations
Company owners often seek a recapitalization in order to achieve what may appear to be conflicting goals: the sale of a significant portion of the business to create personal liquidity diversifying personal net worth, while retaining a significant stake in the business to participate in the future growth. Both of these goals are well served by a Mangrove recapitalization, particularly given our track record of helping companies grow.
Family Succession Recapitalizations
In the life of family businesses, there often comes a time when a recap is necessary to transition ownership from one generation of the family to another, to create liquidity and diversification in an estate, and to ensure that the next generation gets their opportunity to run and grow the business. Mangrove’s partners have an extensive history of successfully navigating family dynamics and achieving the often divergent goals of different family members.
Management Buy-Outs
When incumbent managers have the opportunity to buy the company or division that they run but do not own, they need a partner with the credibility, funding and experience to get the deal done. They want a partner who will treat the manager(s) generously, afford them significant ownership, and serve as an effective partner for growth. Mangrove's principals have proven to be a highly effective partner in MBOs of privately held companies, as well as divisions of Fortune 500 companies.
Management Buy-Ins
Company owners face profound challenges in the sale of their businesses or divisions when there is need for talent at the most senior levels of management. When asked, Mangrove's partners have successfully recruited outstanding leadership, enabling this challenging type of transaction. We believe it is important to recruit not only the correct technical talent, but also the right personality who will fit with and respect the company's culture. Moreover, we have proven to be outstanding partners to recruited senior managers by sharing equity generously and helping to build value. (link to CEO Driven Efforts box at same level as Owner/Managers)
Industry Consolidations
One of the greatest opportunities for owner/operators and equity sponsors to build value is found in fragmented industries where solid management teams have the ability to grow through add-on acquisitions. Mangrove's principals have been some of the nation's most active and successful consolidators of industries starting with lower middle market companies. Such consolidations entail partnering with a platform company and backing its owner/operators in the acquisition of several strategically attractive add-on companies. Some of the Mangrove team's consolidation projects have grown in profit ten-fold, enjoying significant value creation, particularly given the purchase price multiple expansion realized as a result of increased size. Mangrove's principals have demonstrated a healthy balance between the ability and desire to create precipitous growth, and the understanding that sufficient infrastructure and management talent must exist to ensure that the growth is both profitable and sustainable.
Select Under Performers
Mangrove will invest in select under-performers where there are a solid investment thesis and value creation opportunities. Value improvement opportunities should be readily evident and quickly realizable. We will consider underperforming companies that are operationally or organizationally challenged. However, we are unlikely to invest in companies with flat or declining revenues.