Monroe Equity Partners is an investment management company specialized in small Corporate Carve-Outs and Special Situations
COMPANY OVERVIEW
MEP goes through relationships to find potential Corporate Carve-Outs, of small subsidiaries, divisions, lines of business, products, and innovations. In the process, we also identify opportunities for Strategic Partnerships, to unlock potential and value.
Core Focus: Corporate Divestitures, Carve-Outs, Spin-Offs, and other Special Situations
Lines of business that no longer fit the priorities of the corporate parent.
Often distressed or underperforming, requiring turnarounds.
May require a different combination of resources, expertise, sales channels, etc., and thus make sense to be spun off as a separate company.
Or could have a significant capital requirement to realize its potential, that the current owner is not willing to provide due to reasons of risk, other higher priorities, or lack or fit with corporate strategy.
DEAL CRITERIA
-
Transaction Types
Corporate Divestitures, Carve-Outs, and other Special Situations
-
Structures
Control positions
Outright buyouts
Spin-offs. We often partner with the progenitor of the carve-out in a wide variety of structures
-
Transaction Size or Capital Requirement
$1 - $50 million ($1 - $10 million Core)
-
Financial Profile
Revenue of $3 - $100 million
EBITDA of -$1 - $10 million ($1 - $3 million Core)
-
Geography
United States
-
Strategic Partnerships
Opportunities in which certain Strategic Investors and/or Strategic Partners provide a significant advantage.
Industries
Niche industrial services
Niche manufacturing
Multi-site specialty retail
Value-added distribution
Waste and environmental
De-Risked Ventures
Retail services
Marketing & advertising
Specialty printing
Specialty packaging
State & local government-dependent businesses (e.g., GovTech, or highly-regulated industries)
Power-related services
Specialty construction
Cannabis
Specialty transportation & logistics
Marine services
EXPLORATORY PROCESS
To find and explore opportunities, we have strategic conversations with business leaders to help them identify and determine options for:
Lines of business they could potentially sell and make a higher return on capital & time & resources elsewhere
Lines of business that are underperforming or distressed
Business lines that they would want to continue to own part of, yet could be more valuable under new management
Opportunities that could be opened up for one of their business units, if it were to take on a significant capital raise or strategic partner
Sometimes these conversations lead to specific opportunities, and regardless they always make for great ongoing relationships. We sometimes help surface opportunities that aren't right for us, and we gladly help advise and connect for an alternative viable path.
PORTFOLIO
-
MessageWrap
Commercialized a patented retail marketing innovation MessageWrap, transforming the black conveyor belt at retail checkouts into a store experience with full-color printed messaging and an antimicrobial surface.
-
Goldrock Shorelines
Launched in 2018 as an effective carve-out, Goldrock and its predecessor grew rapidly to become a market leader in shoreline services in West Michigan. The company serves both residential and commercial markets.
-
C3 Industries
Premier, vertically-integrated cannabis company in select markets, delivering high-quality products with strong brand recognition. Headquartered in Ann Arbor, Michigan, operate the retail network, High Profile Cannabis Shop.
-
Right Lane Environmental
Led by Right Lane Capital, purchased an abandoned coal mine in Pawnee, IL, providing solid waste disposal services to independent power producers, and restoring the mine to its natural condition.
-
Rock Hill Capital
Private equity firm in Houston TX investing in small-to-lower middle market companies, focusing on buyouts and recapitalizations of industrial businesses. Over $200 million of capital under management.
TEAM & PARTNERS
Our team and partners are the drivers of MEP's core values of Partnership, Resourcefulness, and West Michigan values with national reach.
Core Team
JIM MCAVOY
Operating Partner
NATHAN VANDERPLOEG
Managing Director
-
As Managing Director, Nathan oversees the firm’s portfolio companies and leads sourcing of new deals. In MessageWrap, which was spun out of Mol Belting Systems, he led the company from inception to meeting the growth requirements for the 2019 Inc 5000 fastest-growing private businesses in America and the 2020 Financial Times list of The Americas’ Fastest Growing Companies. He sourced and led MEP’s entry into the marine construction industry, growing the business from $500K in revenue to $7.8 million in revenue and EBITDA of $2.1 million in just two years. He is a founding backer of C3 Industries, one of the country's fastest-growing multi-state cannabis companies, which has raised over $100 million in capital and operates in six states. And in a carve-out, Nathan partnered in the acquisition of an abandoned coal mine in Illinois that provides waste disposal services to power producers. With a B.A. in Economics from the University of Michigan, he worked in New York City at award-winning design firm Rockwell Group, in Washington D.C. with the Republican Governors Association and Maverick PAC, and spent seven years as a management consultant with Greystone Global and Phase One Consulting Group (acquired by Accenture) focused on strategic planning, business transformation, and turnarounds.
TED ETHERIDGE
Operating Partner
-
Jim is one of the country’s experts in Lead Generation, lecturing on the topic for 10 years running at Northwestern’s Kellogg School of Management and University of Chicago’s Booth School of Business. He spends most of his time personally generating leads for a select set of clients, and has spent over 30 years accumulating diverse business experiences in business development, marketing and selling roles within the healthcare/managed care, financial services, learning/consulting and online market research industries. Previously, Jim was a Director of Sales at Communispace Corporation, a Boston based, online market research company founded in 1999. Jim worked closely with the senior management team and reported directly to the President and CEO. He helped create and shape sales strategy within an emerging market and sold to senior decision makers at Fortune 100 companies. In 1993 he joined The Forum Corporation, a global leader in workplace learning. Jim holds a BA in Economics & History from The College of William & Mary. Jim’s spare time is spent with his wife and three children.
Strategic Partners
Many individual Strategic Investors, with expertise across Niche Manufacturing, Industrial Services, Supermarket Retail, Consumer Products, Cannabis, Construction, Marine Services, Printing, Packaging, and more.
CONTACT
Please reach out to us with any potential opportunities. We are happy to pay appropriate finders fees in the event of a successful transaction.
980 Monroe Ave NW
Grand Rapids, MI 49503