Mergers and Acquisitions — Deals That Make Sense

CGX is seeking to acquire companies that fit five criteria: revenues exceeding $10 million; management willing to stay post-acquisition; solid EBITDA and operating income; strong capex history; and a cultural fit with the parent company. The last item is not insignificant, stresses Cohen.

“We don’t buy companies to consolidate facilities and shut plants down,” he says. “We buy them to improve and grow them. We depend on existing management to play well in the sandbox with others, including our 68 other company presidents.”