Investment Strategy

Overview

Sequel typically invests in profitable middle market businesses in its focus areas which have successful track records, growth potential and high quality management. We focus on companies in sectors where we have industry knowledge and experience and where we believe we can create meaningful, long term value.

Investment Parameters

We typically invest in companies and structure our investments within the following parameters:

  • Enterprise values between $20 and $200 million
  • EBITDA greater than $5 million
  • Operations primarily in the United States
  • Investments in preferred stock and common stock securities
  • Primarily control investments, but will entertain non-control structures with like-minded investors

Industry Focus

We focus our investment efforts primarily in the following industries:

  • Food and beverage
  • Agribusiness
  • Plastics
  • Other industrial sectors

Characteristics of Target Investments

Sequel concentrates on businesses that manufacture and/or distribute a tangible product in industries that are not highly sensitive to technological change or highly cyclical in nature. We generally look for the following attributes:

  • Historical profitability
  • Revenue and earnings growth potential
  • Defensible market position
  • Resistance to dramatic economic cycles
  • Growing markets with solid fundamentals and trends
  • Strong management teams

Transaction Structures

Sequel provides flexible operating, strategic and financial solutions to meet the business needs of owners, management teams and other stakeholders. Our transactions may include:

  • Buy-outs and Recapitalizations – enabling owners to diversify their assets, satisfy estate planning goals, address succession planning needs or provide ownership opportunities for key managers
  • Management Led Buy-outs – providing equity capital to support management teams in their efforts to acquire their businesses
  • Growth Capital – supporting geographic or product line expansion, fixed asset additions, strategic acquisitions and consolidation initiatives
  • Acquisitions of Divisions, Subsidiaries and Portfolio Companies – enabling sellers to obtain liquidity or to divest non-core businesses

“The Sequel team helped advance several of our growth initiatives, including new product development, several acquisitions, and a plant expansion. They bring fresh perspectives and valuable insights – they work hard to find solutions.”

Gene Graves

CEO, Lakeview Farms

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