ACQUISITION CRITERIA – KPAC Solutions

KPAC's focus

is on the Fortune 1000 public companies with distressed subsidiaries and/or carve-outs. Many times this has included entering into a long-term annual supply contract with the seller at closing.

Industries

The business should be
involved in Manufacturing
and/or Distribution.

Location of Business

Global Reach includes North America (USA & Mexico), Europe, Baltic States & Asia (Japan, S. Korea, Taiwan and China). Proven Cross-Border experiences.

Annual Revenues

The subsidiary/carve-out should have annual sales in the range of $20 million to well over $300 million.
However, on the lower end, the overall asset values represented on the Balance Sheet must meet a minimum cumulative asset value.

The business should have one or more of the following issues:

Negative current and historical Cash Flow

90%

Operational issues/problems directly relatable to competition on a global scale

90%

Lack of any clear strategic direction resulting from historically poor industry wide performance issues

93%

An urgent need to be positioned for:

global competitiveness regarding cheaper labor issues (perhaps non-union verses added costs/overhead of a union operation),

cheaper PP&E costs on a global scale,

excessive capacity concerns on a regional and/or global scale or,

extensive annualized CapEx requirements to achieve manufacturing equality with all competitors on a regional and/or global basis.