What SCOOTER Does
Private Equity Strategy
As an Independent Sponsor SCOOTER seeks to acquire control equity stakes in U.S. based lower middle market companies. We welcome situations where our investment and involvement provide real tangible value, helping to maximize the potential of the business. The SCOOTER team believes in an approach that is hands on enough to influence the key drivers of the business but hands off enough to empower management to execute on their plan and vision. This requires a close working relationship and alignment of interest with company owners, managers, employees, suppliers, and other important stakeholders.
Our goal is to help build and grow the companies we partner with, taking them to the next level and beyond. We are willing to provide both equity and debt capital as part of a transaction. This allows us to customize the needs of the businesses we acquire or invest in, better positioning them for future growth and success.
Strategy
We look for businesses with the following characteristics:
Unique or differentiated platforms, services, or products
Clearly definable and sustainable business models
Defensible market positions and strong growth potential
Entrepreneurial and dedicated management teams
The types of situations we look for include:
Experienced management looking for growth capital and/or strategic help
Buy and build opportunities
Rollups in fragmented industries
Management buyout or re-capitalization
Family business in need of succession plan
High growth businesses with differentiated market position or brand
Acquisition Criteria
Enterprise Value: $1 million – $50 million
EBITDA: $0.25 million – $10 million
Business Types: industrial companies, consumer service businesses, specialty finance companies, and certain special situations
Geographic: United States based
Fee Structure
Special Limited – investments of $1 million or more
Management Fee: Percentage of EBITDA based or 1.50% annual on collected capital
Carried Interest: 15% over a 8% compounded annual preferred return
General Limited – investments under $1 million
Management Fee: Percentage of EBITDA based or 2% annual on collected capital
Carried Interest: 20% over an 8% compounded annual preferred return
SCOOTER provides comprehensive strategic, financial, and operational advice to U.S. based start-ups and lower middle market companies.
Strategic advisory services include long-term business planning, goal setting, establishing key performance indicators, and evaluating partnerships and/or joint ventures. Most organizations have a general idea of the direction they are heading, but our experience leads us to believe that many businesses, particularly in the lower middle-market segment, do not fully leverage the power of strategic planning as a value creator.
Financial advisory involves continuous monitoring, planning, and adjusting to keep the business focused and on track toward long-term financial goals. Services we provide include budgeting, cash flow forecasting, financial modeling, resource allocation, capital optimization, M&A, asset and business divestitures, and financial restructurings.
Operational advisory includes process improvement, supply chain management, sourcing and procurement, quality control, sales and marketing, research and development, and technology. Our SCOOTER team is passionate about guiding clients on their continuous improvement journey. Our approach to operational planning applies operational excellence principles across the organization to improve confidence, clarity, focus and alignment.
Strategy
We can help with the following:
Start-ups
Broken business models
Restructurings
Divestitures
Roll-ups
Engagement Criteria
Revenues: Subject to negotiation
EBITDA: Subject to negotiation
Fee Structure
Monthly Retainer: Based on time and work required
Flat Fee Engagement: Based on time and work required
SCOOTER helps advise on, and arrange for, equity and debt financings for U.S. based start-ups and lower middle market companies. We are flexible in our approach to structuring a transaction so that it best fits the needs of all parties involved.
Strategy
We typically work with businesses or situations with the following characteristics:
Proven business models
Experienced management teams
Strong collateral support
Idiosyncratic risk profiles
Distressed or discounted valuations
Opportunities we consider include:
Debt financings
Bridge loans
Debtor in possession (D.I.P.) financing
Equity financings
Equity recaps
GP and/or LP buyouts
Investment Criteria
Size: $250 thousand – $25 million
Term: No more than 5 years for debt
Geographic: United States domiciled
Fee Structure
Equity Investments: Available upon request
Debt Investments: Available upon request