The lower middle market typically includes companies $20 – $100 million in revenue and $3 – 30 million in cashflow. This segment of the market offers a niche investment area for Blackford, and allows us to focus on industries and businesses where we maintain a competitive advantage.
Blackford seeks mature companies with proven profitability, stable cash flows, and management teams that are looking to grow the business yet require additional capital and expertise to reach these goals.
In most cases, Blackford seeks majority-control of a company where we believe we can add meaningful value through operational enhancements and an optimized capital structure.
Blackford focuses on low-tech manufacturing, distribution, and service companies with an industrial focus, while targeting businesses with a customer base in mature and growing industries.
As we evaluate a deal, Blackford develops a growth and operations strategy prior to closing the transaction utilizing its network of operating partners and strategic resources.
Blackford targets 3.0x – 4.0x cash-on-cash returns (25%+ IRR) over a 5 – 7 year period.