Investment Criteria

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. 

Investment Criteria

  • 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.

Targeted Industries

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

Prohibited Investments

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.