& Partners has developed a series of criteria that should be present in
target companies to have them considered for acquisition. Acquisition
candidates include companies with the following attributes:
Niche Business An established business whose product demands remain
stable during periods of economic recession and are not a risk to rapid
- Leading Market
Position A favorable cost structure and established brand names with
dominant market share positions.
- Strong Growth
Potential Potential for significant earnings growth based on favorable
industry trends as well as strategic acquisitions and expansion into
new geographic markets.
- Diversity of
End-Users A diverse array of end-user markets, which reduces the company's
dependence on any one industry and minimizes the adverse effects of
- Qualified Management
Team A demonstrated ability and commitment to continual improvement
in profitability by improving productivity and reducing costs. In order
to align management's interests with the interests of investors, Mills
& Partners offers stock ownership and performance incentives.
- Reasonable Selling
Price The purchase price of the acquisition candidate must be reasonable
relative to its historical and projected cash flow and able to offer
superior equity returns relative to public equity alternatives.
may include divisions or subsidiaries of public and private companies,
public companies desiring to go private and private companies whose investors
are seeking liquidity. Acquisitions are typically financed using a combination
of senior bank borrowings secured by the target company's assets, subordinated
indebtedness and equity.
Mills & Partners has participated in originating transactions having a
listed value in excess of $9.6 billion, ranging from less than $5 million
to nearly $2.0 billion, as well as $3.0 billion in sale and recapitalization
transactions. One of the largest transactions was a comprehensive financial
restructuring, planned and engineered by Mills & Partners within the favorable
interest rate environment of 1993.
Individual acquisitions greater than $300 million have been completed
in the acquisition of Mills & Partners' core operating companies. In addition
to the acquisition of core operating companies, Mills & Partners actively
pursues strategic add-on acquisitions. Through add-on acquisitions Mills
& Partners has been able to take advantage of alternative channels of
distribution, provide product diversification, generate operating efficiencies,
eliminate overhead and redundant operating costs, and enhance our equity
partners' position. Mills & Partners has completed more than 35 strategic