Deal Criteria

Buyouts

Intervale pursues a focused investment strategy, targeting five to seven platform investments per fund. A small portfolio enables us to concentrate capital and resources on every deal.

Buyout opportunities for Intervale typically originate from private owners seeking liquidity, new management, or capital to accelerate growth. The ideal buyout platform will have the following characteristics:

  • Between $8 and $50 million in trailing twelve-month EBITDA
  • Solid reputation and customer relationships

For pure service companies:

  • Single-basin or regional focus with potential for national expansion
  • Service offering with attractive time-to-payback on deployed equipment
  • Operating in sectors where superior service matters deeply to customers (as reflected in operating margins)
  • Businesses in which value is driven by top personnel more than expensive equipment

For manufacturing companies:

  • Product lines with reasonable differentiation from those of competitors
  • Opportunity to expand product offering or enter new hydrocarbon plays
  • High gross margins
  • Opportunity to improve manufacturing processes
  • A service component to the product sale or installation

Intervale provides management teams with equity ownership, in the form of purchased equity and incentive shares. Our most successful investments have been built by management teams with significant ownership.