Strategy

O2 Investment Partners, LLC invests equity on behalf of our principals as well as a core network of other limited partners and strategic investors. This allows us to design the capital to fit the business. The capital structure of the business must be driven by and facilitate the achievement of the strategic plan, not the other way around. Because we are not funded by institutional investors, we are often able to get comfortable with risks that other investors cannot. We have the flexibility and creativity to help solve problems and issues that may deter other investors. O2 Investment Partners, LLC seeks opportunities where we can provide value to the business and our management partners in areas such as strategy, acquisitions, lender relationships, treasury management, operational efficiency, leadership, and access to a substantial business network in addition to providing growth capital.

Criteria

Transaction Value: $5 million to $50 million
EBITDA: $2 million to $8 million (less for add-ons)
Industries/Business Types: Industrial manufacturing, niche distribution, select service businesses, select technology segments, certain special situations
Other Industries/Areas of Interest: Add-ons for existing portfolio companies; environmental and environmental remediation; real estate related, financial services, technology based businesses, health and medical manufacturing and service businesses
Geographic Focus: O2 invests in companies throughout the United States and Canada with a preference for the Midwest and Great Lakes region (Michigan, Wisconsin, Minnesota, Iowa, Illinois, Indiana, Ohio, Kentucky, Pennsylvania, Ontario)

Investment Style

O2 Investment Partners, its principals and strategic partners look to provide resources to management in the development and execution of the strategic plan for the business. We have extensive and varied backgrounds and expertise upon which management can draw for support in developing strategic plans and growth initiatives, financial modeling and analysis, add-on acquisition analysis and negotiation, lender relationship management, treasury and cash management, product and market development, marketing, operational improvement, technical analyses, environmental issues, tax and tax planning, legal, and other issues that are non-core to the business that may distract management from focusing on execution of the plan. O2 Investment Partners is not a holding company. Each investment is made separately with equity invested by our principals and other core investment partners. While we are strong believers in accountability and key metrics, we also believe in a decentralized investment approach that is hands on enough to understand and help influence the key drivers of the business, but hands off enough to empower management to execute their plan. This includes a compensation/incentive system that is aligned to the business plan. We are flexible and creative in our approach to structuring a transaction that best fits the needs of all parties involved, including the seller, management, employees, customers, suppliers as well as the buyers. We seek to maximize the opportunity to achieve the vision and strategic plan for the business and in doing so, create long term sustainable shareholder value. The types of situations we look for include:
  • Experienced management looking for capital and/or strategic assistance in taking a business to its next stage of development
  • Industry buy and build - expansion capital
  • Management buyout or re-capitalization
  • Corporate carve out or orphan
  • Family business – ownership succession
  • High growth businesses with defensible market position or brand
  • Management investment opportunity – co-investment and/or performance based incentive
  • Certain turnaround situations
  • Add on acquisitions for portfolio companies

Key Business Characteristics

O2 Investment Partners, LLC look for businesses with the following characteristics:
  • Track record of stable, recurring cash flows
  • Entrepreneurial management team with a track record of developing and executing a strategic plan designed to create long term shareholder value
  • Clearly definable and sustainable business model with defensible market position and growth potential
  • Track record and culture of seeking technology and innovation as key strategy for sustainable growth and value creation

Community Corporate Citizens

As part of and in addition to creating superior returns for shareholders and partners, O2 Investment Partners, LLC believe in making a positive contribution to the communities in which our businesses and their employees are located. Being a good corporate citizen means creating a safe environment not only for employees, but for the surrounding community as well. It also means participating in and supporting local charities and community organizations. Being a good corporate citizen is an integral part of our investment philosophy.