Investments
FCC's investment activities are devoted to acquiring, as principal, small to medium sized companies in a variety of industries. FCC seeks to work with entrepreneurs and managers who want an experienced financial partner that will negotiate, structure, finance and close a transaction that will provide for the company’s continued growth and success. We provide the capital, experience and contacts to help management build the long-term value of the company. Current investments include minority stakes in Preview Systems, Inc., an electronic commerce software provider for selling digital goods over the Internet, Crescent Systems, LLC, an electronic commerce software and automatic bill payment service provider, Dog ‘n Suds, a fast food chain operator and franchiser and Ralin Medical, an out patient managed care service provider.
Operating
Philosophy
FCC
prefers to invest in companies with experienced, talented and committed
management teams. We generally expect management to operate their company
autonomously within the framework of agreed upon annual business plans. The
principals of FCC work closely with portfolio companies at the Board of
Directors level in such areas as strategy formulation, growth financing,
strategic acquisitions and building professional management teams. Because we
believe it is important for management to fully share in the corporate goals, we
prefer to work with management teams who are willing to invest in their
companies and will structure transactions to give management additional equity
participation.
Acquisition
Criteria
FCC
is primarily interested in companies with $5-50 Million in revenue. We look for
companies with proven management and proprietary products or processes, a
significant market share or a unique niche which gives it a competitive edge in
its given market. While we have not limited the types of companies we will
consider, we are particularly interested in electronics manufacturers and
technology companies. We will also consider investments in retail companies and
companies that are experiencing financial difficulties. We are generally not
interested in distribution companies.
FCC
will pay acquisition prices consistent with the company’s ability to generate
cash flow.
Intermediary
Fees
FCC welcomes acquisition opportunities from principals, management and intermediaries. We are pleased to enter into Lehman formula fee agreements with intermediaries on a deal-by-deal basis.