Why Work with Ironwood Capital
We know Consumer Services.
We believe the Consumer Services space represents an ideal opportunity to partner private capital with proven management teams to achieve excellent outcomes. The industry is comprised of a series of sub-categories, each with its own unique characteristics. Because we understand the industry and many of these sub-categories, we can be quick and flexible in underwriting and structuring transactions that lead to long-term relationships with our portfolio companies.
- The Ironwood Capital team has nearly two decades of investment experience in the Consumers Services sector.
- Our experience offers management teams and business owners a combination of intelligent capital and strategic advisory expertise.
- We invest non-control capital in the form of subordinated debt and preferred stock in amounts ranging from $5 million to $30 million.
- We work with companies within the Consumers Services sector to support business owners and financial sponsors in growth financings, full and partial recapitalizations, generational transitions and buyouts.
- We work with a diverse group of businesses in the sector, serving both retail and wholesale customers.
Benefits Derived from Mezzanine Capital
Mezzanine Capital allows business owners to achieve their objectives, without giving up control. The benefits of mezzanine include:
- Patient Capital: No amortization allows for reinvestment in growth
- Long-term horizon: Typical investment horizon of 5+ years
- Flexible use of proceeds: Including “chips off the table”
- Less dilutive or non-dilutive: Less dilutive than an equity-only solution
- Improved bankability: Banks view institutional junior capital favorably
If your company meets our Consumer Services investment criteria, please contact us:
- REVENUES: $20 million to $250 million
- EBITDA: $3 million to $15 million, with margins of 10% or better
- MANAGEMENT TEAMS: Proven management teams with a significant equity stake
- COMPETITIVE ADVANTAGES: Growing market share with sustainable margins
- CAPITAL STRUCTURE: Adequate liquidity, capitalized for growth
- STABILITY: Three years of positive EBITDA with strong forward visibility
- CASH FLOW DIVERSIFICATION: By customer, product line and channel