The transactions undertaken by Capitol Partners typically include the following basic characteristics:
Continued participation by existing management, supported by a properly structured equity-based incentive system that effectively aligns the interests of employees and management with those of the investment firm.
Continued equity participation by seller, providing the sellers with a combination of cash and continued participation in the 'upside' of the venture.
Debt leverage, which reduces agency costs while increasing potential equity returns.
Negotiated exclusive transaction, which permits rapid closure of transactions.
Historically the firm has made acquisitions of up to $50 million with equity investments of up to $20 million. While the firm targets investments of $25-50 million, Capitol Partners has actively pursued and will continue to explore smaller investments.
What is our overall strategy?
What type of opportunities interest us?
Which industry segments are our primary focus?