Private Equity Transactions

Our Mission

Milestone is in the business of employing capital and maturing its growth. We seek out and negotiate private equity investments in small to middle-market companies. The companies we are interested in will typically require equity in amounts ranging from $5 to $30 million in order to reach their medium-term goals.

Our Criteria

Milestone’s experienced team is interested in investing in companies engaged in distribution, manufacturing, service, and value-added processing activities. We normally do not invest in start-ups, pure construction companies, real estate projects, energy exploration, high-tech or bio-medical companies where no revenue-producing product or service line exists.

The Milestone Difference

We are not bound by rigorous and cumbersome committee requirements. We have a virtually seamless interface with our investors which enables us to have efficient and successful negotiations with the owners of private companies we target for investment. Further, we are free from the constraints of lengthy approval processes and rigid investment parameters.

Our Investment Formula

Private Companies
– We generally seek out strategic investments in private companies. We have no interest in tender offers or hostile acquisitions. Most of our transactions are structured as management buyouts or recapitalizations. We become the strategic partner of management in a management buyout and the owner-operators in a recapitalization.
Deal Size
– We seek to deploy equity capital of $5 to $30 million per transaction. We prefer non-auction transactions in the $20 to $100 million aggregate value range. We will also look at transactions in excess of $30 million on a case-by-case basis.
– When analyzing a prospective opportunity, Milestone places heavy emphasis on management. From time to time, Milestone will recruit management but we prefer investing in companies with a strong, existing management team.
– Milestone is not subject to geographic constraints, but prefers investing in businesses located in the southwestern United States, with a heavy emphasis in Texas. Occasionally, we will make investments outside this region.
Percentage Ownership
– We prefer to obtain a majority interest in the target company. Our goal is to add capital, insight and strategic planning to your top quality management team so your company can reach a higher level than could otherwise be achieved without our involvement. The best formula for a successful partnership is to combine top quality management with top quality planners and financiers. The synergies created by this strategic partnership should result in a greater return once the exit strategy is implemented.
– We do not participate in the auction process. We do not want to engage in any investment transaction where a company is simply for sale to the highest bidder. We prefer to make our resources available to a cooperative, talented and knowledgeable management group that wants to stay aboard and grow the business at a more elevated pace once we combine our efforts and talents.
Common Stock
– We prefer common stock investments over preferred stock or subordinated debt investments. However, we have significant flexibility and intend always to strive to effect a transaction structured in an optimal way for all parties and purposes.
Investment Horizon
– Milestone normally seeks to exit an investment in four to seven years. However, we have the collective resources to take a long-term, unpressured view if your company requires a longer horizon to reach its potential.
Financial Buyers
– Although we are financial buyers, we do not want to take a passive role in the growth of your company. We generally do not participate in the day-to-day management of the companies in which we invest, but representatives will take seats on the Board of Directors and actively participate in policy making and strategic planning.
Exit Strategy
– At the outset of the investment, we focus on realizing enhanced value and liquidity. With our experience, we will orchestrate the positioning of the portfolio investment to be well received in the public or private merger and acquisition market.

To discuss participating with Milestone in a mutually-beneficial relationship, contact one of our representatives in Houston, Texas.

Three Riverway
Suite 1010
Houston, Texas 77056

713 993 0303 telephone
713 993 0711 facsimile