Investment Criteria

SimpleCiti invests in established companies with a solid business model, sustainable market position and strong management team. Other important criteria relate to cash flow generation and strong North American presence or development potential.

Profile

  • Warehousing & Specialty Distribution
  • Manufacturing – Paper, Packaging, Plastics, Fragrances, Chemicals
  • Liqour Consolidation
  • Headquartered in North America
  • Attractive and defensible market positions
  • Favorable growth prospects
  • Stable competitive dynamics
  • Positive historical cash flows

Profile Size

  • $25-200 million in revenue
  • $3-25 million in EBITDA
  • $15-75 million in equity investment per platform

Management

  • Desire to work collaboratively in setting strategic objectives and priorities, continuously improving operational effectiveness, identifying growth opportunities, and making add-on acquisitions.
  • We do not become involved in day-to-day operations.
  • We will invest in management transition situations.

Sellers

  • We acquire businesses from entrepreneurs, families, private equity groups, and public and private corporations.
  • We have been the first institutional investor in most of our companies, partnering with entrepreneurs and families to grow their successful businesses while providing for wealth diversification.
  • We make only control investments.

Investment Objectives

  • $15-$75 million-plus equity commitments in a variety of growth, consolidation, and buyout opportunities of North American middle market companies;
  • Partner with companies with EBITDA generally between $3 million and $25 million; and
  • Help the management teams drive value creation through sales and earnings growth.

Add-on Acquisitions

Competitive Advantage

Unique products and innovative thinking is a start, but lasting competitive advantage typically comes from such things as strong intellectual property, strategic relationships and agreements which are exclusive (or exclusive with respect to a specific field), first-mover advantage which can be converted into “ownership” of the customer relationship, very strong brand recognition, hard to duplicate manufacturing or business model innovation, or special skills or knowledge not easily replicated.

Management Team

SimpleCiti Holdings looks for founders and entrepreneurs who seek to build high-growth businesses. Management team members are visionary, passionate, committed, tenacious, coachable and credible. We look for individuals that demonstrate leadership, effective and timely communication, clarity of vision, good listening skills, willingness to work hard, and a service- and customer-centric view of the world. 

Solid business model

Solid business model

The presence of a solid business model is a key element for each investment. The company’s leadership position needs to be derived from a real competitive advantage which is strong and sustainable. In this case, the main keys for unlocking further value creation are in the hands of the company. Likewise, development will not be primarily dependent upon market conditions, but will be driven by internal initiatives or specific opportunities. Sustainable competitive advantage can be derived from barriers to entry, unique technology, dominant market share or state-of-the-art operations.  

Growth perspectives

Growth perspectives

We seek to invest in companies with clear and sustainable growth perspectives, over and above market growth. SimpleCiti hence prefers investment returns to be primarily based on the increase of sales and cash flow rather than on pure deleveraging and financial engineering. Furthermore, we believe that growth fuels corporate development and can counterbalance the impact of a cyclical downturn in the overall market.  

Capacity to generate cash flow

Capacity to generate cash flow

The capacity of a company to convert sales into free cash flow is a third important investment criterion for SimpleCiti. It allows the company to further invest in the growth and strategic development of its business and/or to distribute dividends on a regular basis. 

Strong management and governance

Strong management and governance

SimpleCiti invests in companies led by strong management teams displaying strategic vision, dedication and inspirational leadership. We encourage the implementation of long term incentive plans that align the interests of management and shareholders. 

Investment Strategy Components

Industry expertise

As specialists in high speed consumer packaged goods, Beverages, Liquor Store Consolidation, Commercial Real Estate Investments, & Opportunity Zones we leverage deep sector knowledge to hit the ground running, make informed decisions, be strategically creative and identify real potential — all within the context of the targeted industry.

Value creation

Capitalizing on the experience and expertise of our investment staff, operating advisors and expansive network, we align with our partners to not only grow — but accelerate — businesses.

Add-on acquisitions

We work closely with our management partners to source and close strategic opportunities that are financially accretive.

Partnership culture

Our core set of values based on integrity and mutual respect allows us to transform businesses “the right way” — one that benefits the company, its people and the bottom line.

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