Investment Criteria
Sectors
Bessemer Investors targets companies in industries that leverage our experience, network, and value proposition including:
- Industrials
- Business Services
- Consumer
Industrials
Industrials
Business Models & Sub-Sectors
- Process and flow control
- Value-added distribution
- Industrial technology
- Packaging
- Industrial services
- Utility and Infrastructure Services
- Aerospace and defense
Themes & Attributes
- Highly-engineered or “spec’d-in” products / components
- High cost of failure / downtime
- Intellectual property or other hard-to-replicate advantages
- Aftermarket parts and services revenue streams
- Emphasis on safety, security, and/or increasing regulation
- Aging infrastructure
Business Services
Business Services
Business Models & Sub-Sectors
- Facility and support services
- Testing, inspection and certification
- Lab services and products
- Business process outsourcing / Contract manufacturing
- Insurance distribution and services
Themes & Attributes
- Recurring revenue, predictable demand
- Specialty / niche focus providing proprietary services / products
- Emphasis on safety, security, and non-discretionary purchases
- Enhanced cost benefit to customers and / or conversion of fixed costs to variable
- Continued trend toward greater outsourcing
Consumer
Consumer
Business Models & Sub-Sectors
- Residential services
- Animal health / pet products and services
- Food and beverage: equipment, distribution, ingredients
- Franchisors, franchisees, and restaurants
- Beauty and personal care products, services and ingredients
Themes & Attributes
- Reoccurring and non-discretionary buying patterns
- Strong consumer awareness with targeted audiences – platform for product or service extension
- Highly favorable customer experience
Size
We pursue investments across a broad size spectrum and our platform investments tend to fall in the following ranges:
- $50 – $150+ million of equity with significant flexibility to scale
- $5 – $50 million of EBITDA
- $75 – $500 million of Enterprise Value
Add-on acquisitions of any size.
Characteristics
Bessemer Investors targets businesses that exhibit one or more of the following attributes:
- Proven, Differentiated Businesses
- Defensible Market Position
- Predictable Demand Patterns
- Multiple Growth Levers
- Strong Management
Proven, Differentiated Businesses
Proven, differentiated business models with attractive margins and cash flow profiles.
- Highly-engineered, mission critical, or “spec’d-in” products and services
- Low product / service cost relative to value or cost of failure
- High return on invested capital and/or cash flow conversion
- Compelling unit economics with potential to scale efficiently
Defensible Market Position
Strong, defensible market position in stable or growing end markets.
- Secular tailwinds
- Demonstrated ability to gain market share
Predictable Demand Patterns
Stable and recurring demand drivers.
- Long-term contracts, non-discretionary products, high switching costs, and/or retention rates
- Replacement parts, consumables, and service revenue streams
Multiple Growth Levers
Identifiable levers for growth and/or enhanced profitability.
- Positive, long-term organic growth
- Platform for accretive acquisitions
- Margin improvement opportunities
Strong Management
Strong management teams with a clear vision for future value creation.
- Experienced teams with a demonstrated track record of execution
Structure
Bessemer Investors invests across a wide range of situations and structures, including:
- Majority or minority investments
- Family or sponsor owned businesses, corporate carve-outs, and public-to-privates
- Platform acquisitions as well as buy and builds
- Primary growth capital or shareholder liquidity