AFG works actively with management teams, business owners, investment bankers, business brokers, banks, consultants, turnaround specialists and attorneys to find investment opportunities...
AFG invests in companies with the following characteristics:
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Manufacturing Sector
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History of Profitability
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Strong Market Positions
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$30 million - $100 million in Revenues
AFG strongly favors manufacturers of "intermediate" products (i.e. products that are sold to other businesses rather than directly to consumers). In addition, AFG prefers to invest in established companies or divisions, with focused lines of business.
PREFERRED INDUSTRY SECTORS
Sectors that are of particular interest to AFG include the following:
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Industrial components and equipment
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Electrical and electronic equipment
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Process instrumentation and controls
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Analytical instruments and measuring devices
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Fluid control, filtration and pumps
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Specialty chemicals, adhesives and coatings
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Plastics and synthetic materials
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Healthcare and safety equipment
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Manufacturing services and testing
TRANSACTION TYPES
Management Buyout (MBO) -- Managers of standalone companies, subsidiaries or divisions pursue an MBO in order to increase their influence in the development of a company and the implementation of its strategy. Private equity firms such as AFG typically partner with management to provide the equity portion of the acquisition financing. The quality and industry expertise of the private equity firm is often crucial to the success of the MBO.
Corporate Divestitures -- A corporate divestiture occurs when a large company divests a division that is non-strategic or a division that might be worth more as a separate entity than as part of the parent company. AFG partners with the management teams of these non-core divisions to acquire and revitalize them by establishing proper management incentives and by providing access to capital, operating and strategic resources.
Private Companies/Family-Owned Companies -- A significant number of private and family-owned businesses have reached a stage where the founder and the next generation owners and/or management have different goals and objectives. These founders often prefer to work with a private equity firm like AFG that has significant industry experience and the flexibility to develop creative transaction and estate planning structures.