Mann Capital Company is one such capital investment firm hungry for an economic rebound. Established in 1992, and formed for the sole purpose of diversifying the Mann family holdings away from traditional real estate and publicly traded securities into alternative investments, their investment strategies focus on added crafted solutions for private company shareholders.
Originally handling investment-grade triple-net leased investment and industrial properties for corporate clients, Robert Mann, CEO of Mann Capital Company, now takes on projects that specialize in re-capitalization of private companies to provide shareholder liquidity events as well as growth capital.
“In essence, we’re second stage investors,” says Mann. “So a marquee deal for us is a company with a three-year track record of growing revenues and stable profitability. Typically, those companies operate with a 30% gross profit margin and 10% EBITDA. Revenues will range anywhere from $20 million to $500 million. That being said, we have a lot of flexibility. We can make pure growth investments in companies where all we need is break-even profitability. We can invest in under-performing companies. We even have access to certified minority capital. We also like MBOs (Management Buyouts) and pre-IPO liquidity events.”
Exit strategies are critical for Mann Capital, explains Mann. “We need to have some horizon on when we’ll be able to exit and provide our investors with a return on their capital. We have more flexibility than most. Our capital is a little bit longer term, and we have an advantage from the traditional investment banker in that we provide a very quiet transaction where entrepreneurs can get something done seamlessly, so that their employees aren’t upset.”
During the economic downturn, Mann Capital focused much more on efficiency. “If you look at the average company we talk to, they were down 20-30% of their revenues and that obviously affected their bottom line. So, that had a huge impact on values in the market. Business really slowed down for us. That’s kind of the bread and butter of the business. If valuations are down, revenues are down and there are not very many people who need our services and our capital. So we got much more efficient, and took that opportunity to look at all of our processes from the ground up, to retool everything,” says Mann.
The prospect for an economic growth rebound and increased global consumption, however, can generate strains on the global financial system, particularly global savings. “Couple that with the long-feared change in long-term capital gains tax rates, and you’ve got some significant drivers in the market,” says Mann. “It’s important for us to position ourselves in preparation for these economic changes. Improved efficiencies and wise investments will drive Mann Capital going forward.”
For more information, please visit: www.manncompany.com
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