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Westward focuses on companies with $20 to $500 million in revenue, and $5 to $25 million of EBITDA. We believe that the attractive growth potential in the smaller middle-market makes it well worth the extra effort required to identify and partner with these smaller businesses, and enables us to add more value to the relationship.

 

CHALLENGE:  LIMITED PRIVATE EQUITY BUYERS

 

• Traditional private equity firms typically target larger companies, which has in turn limited the total amount of liquidity available to sellers in this market.

• Traditional funds are often required to deploy a minimum of $25-30 million in equity per deal, which excludes most smaller middle-market transactions.

• Westward was specifically created to address the needs of the smaller middle-market.

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OPPORTUNITY:  LARGE NUMBER OF AVAILABLE INVESTMENTS

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• Transactions less than $100 million represent approximately 75% of all M&A deals completed.

• As the North American population ages and more baby boomers retire, many middle-market companies will be for sale as owners manage estate and generational transfer issues.

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CHALLENGE:  HIGH BARRIERS TO ENTRY

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• Lower middle-market transactions are frequently based on developing personal relationships.

• Geographic proximity to transactions drives deal-flow.

• Westward has an established network in its target geography, which acts as a significant barrier to many new entrants.

 

OPPORTUNITY:  UPSIDE POTENTIAL

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• Lower middle-market companies typically have higher growth potential and more room for operational improvements.

• The investment performance in this sector has historically exceeded all other major asset classes, including middle and large market private equity investments, the S&P 500, venture capital, and hedge funds.