Mno-Bmadsen is organized as a diversified holding company and owns subsidiary companies which operate within certain targeted industries in accordance with its Long-Term Development Plan. Mno-Bmadsen has established stringent investment criteria, taking into consideration that these investments will act as the cornerstone of the future of the Pokagon Band. This criteria includes acquiring companies with a history of profitability and a strong management team.
- Preference for companies located in Michigan, Indiana, Illinois and other contiguous states.
- At least a two (but preferably a three or more) year profitable operating history, with “Adjusted” Operating Earnings of at least $500,000 on a current basis. (With exceptions of captive tribal gaming or government services start-up opportunities)
- Fairly priced, i.e. a reasonable multiple, using a ‘normalized’ valuation approach.
- A targeted investment of $2-$3 million per deal, with a floor of $1 million being the minimum and $5 million, including add-ons, being the absolute maximum.
- A Management Team already in place or coming in with the change-of-control.
- Preference given to control investments but will consider not-for-control investments but with a potential for control.
- If a ‘not-for-control’ investment, and in addition to “Piggy-back” or Registration Rights, then one (or more) bona-fide exit strategies such as a Put/Call or Buy/Sell Agreement or Right to call for the sale of the entire company.
- “Niche” businesses, meaning those with proprietary products, technology, expertise, reputation, or position in the marketplace.
- Investments may take one (or more) of the following forms: Subordinated Debt, Preferred or Common Stock, Warrants, or Joint Ventures.
- Mno-Bmadsen will seek Board representation or observer rights for all investments.
Mno-Bmadsen will consider investments in the following industries:
- Alternative/Renewable Energy
- Healthcare, eldercare and medical devices
- Basic or light manufacturing
- Green/Sustainability Industries
- Human Capital Development
- Information Technology Services
- Gaming Suppliers & Gaming Hospitality Related
- Food Production
- Government Contracting
- Commercial Real Estate
Mno-Bmadsen will not invest in the following situations:
- Start-ups or early-stage businesses unless there is a captive tribal gaming or government customer.
- Unprofitable businesses or “Turn-around” situations.
- Those companies beyond our targeted geographic boundaries.
- Those companies without management in place at the outset. Exceptions may include where the existing management team continues through a transition period, or where new management can be readily installed.
- Those companies with high R&D expenditures, capital intensive or heavily regulated.
- Gaming (except suppliers).
- Development deals, e.g. real-estate, movies, oil and gas, minerals.
- High tech, life sciences, bio-med or bio-tech.
- Syndications or those in which Mno-Bmadsen has no say or influence (not including Private Equity funds or pooled capital investments).
Mno-Bmadsen is targeting one commercial company acquisition every one to two years, depending on investments within the other two strategic goals. To learn more about Mno-Bmadsen or to discuss what opportunities might apply to your company, contact Troy Clay.