Investment Focus
The emerging industries of wellness and preventative medicine reflect growing consumer demand for healthier lifestyles, as well as the broader need to contain rising healthcare costs. Preventative medicine and wellness are currently fragmented yet growing markets with few dominant brands and few focused private equity investors. Towerview Capital Management seeks to acquire companies in healthcare, food and consumer products and services that serve, or can be positioned to serve, the preventative healthcare and healthy lifestyle industries.
Towerview Capital Management collaborates with owners and management of lower middle-market enterprises, as well as divisions of major corporations whose focus no longer reflects the strategic direction of the parent entity.
The following comprise our investment parameters:
Company
• Middle market companies with regionally established brand equity and distribution channels
• Industries: Preventative or diagnostic healthcare, medical supplies, medical testing companies,
ergonomic products, value added manufacturing, food and beverage, fitness and nutrition and related consumer products and services
• Defensible competitive strategy, complemented by organic growth potential, the prospect of tapping underserved markets and/or potential synergies with other companies
• Solid management team that is eager to collaborate with Towerview to strive for operational excellence
Financials
• EBITDA target: 15-20% EBITDA margins, or $3 MM to $15MM in annual EBITDA
• Valuation range: $10 MM to $100 MM
• Revenue targets: $20 MM to $80 MM, but we will entertain revenues outside this range depending on valuation and future prospects
• Consistent revenue growth, positive and stable cash flows and high earnings quality with repeat or contracted customers
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