Founders Equity Mergers and Acquisitions Summary

Private Equity Firm Profile

Founders Equity’s most common sectors for investment arebuilding materials (17%) and business services (9%) . The Firm’s most common investment types include buyout (lbo, mbo, mbi) (75%) and recapitalization (9%). In total, Founders Equity has invested in 7 US states. Its largest (disclosed) acquisition occurred in 2006 when it acquired Stone Source for $15M.

In the last 3 years, Founders Equity has exited 1 company. The Firm’s most common exit type is trade sale (34%).

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M&A Summary

  • M&A Total Activity17
    • M&A Buy Activity11
    • M&A Sell Activity6
  • Total Sectors Invested 11
  • Total Countries Invested 1
  • M&A Buy/Sell Connections 5
  • M&A Advisors 1

Founders Equity

Founders Equity

545 Fifth Avenue, Suite 401,
New York, New York 10017
United States
(212) 829-0900
www.fequity.com
info@fequity.com

Founders Equity is a private equity firm that looks to lead lower middle-market company investments. Founders looks to invest up to $10 million of equity in companies with revenues between $20 and $150 million and cash-flow between $2 and $15 million. Sectors of interest include business and marketing services, outsourcing and logistics, healthcare services, environmental services, security systems, oilfield services, consumer products and services, food/food Services, franchising, and niche manufacturing. Prospective transactions are generally located East of the Rocky Mountains and include management buyouts, recapitalizations, turnarounds, growth financings, take privates, and corporate divestitures. Founders Equity was formed in 1969 and is based in New York City.


Investment Criteria

Sectors of Interest: Building Materials, Business Services, Consumer Products, Consumer Services, Digital Media, Distribution, E-Commerce, Energy Services and Equipment, Environmental, Financial Services, Food, Franchising, Healthcare Services, Information Technology, Machinery, Manufacturing, Marketing, Media, Medical Products, Publishing, Real Estate, Renewable Energy, Retail, Safety/Security, Transportation

Target Transaction Types: Buyout (LBO, MBO, MBI), Divestiture, Going Private, Growth Capital, Recapitalization, Special Situations/Distressed, Secondary Buyout, Stake Purchase

Geographic Preferences: East US, Midwest US, South US, West US

Transaction Criteria Min Max
Target Revenue 20 150
Target EBITDA 2 15
Investment Size - 10
Enterprise Value - -
values in millions of USD

M&A Summary

Buy vs Sell

Year ≤ '19 '20 '21 '22 '23 '24 T
Buy (0.0/yr) # 11 - - - - - 11
vol $15M $15M
Sell (0.2/yr) # 5 - - 1 - - 6
  17

Most Recent M&A

Company Date Value Type
Stone Source LLC 2022-04-01 - Trade Sale
New York, New York · www.stonesource.com
Oncology Services International, Inc. 2016-07-21 - Trade Sale
Montebello, New York · www.thinkosi.com
Stone Source LLC 2015-09-23 - Recapitalization
New York, New York · www.stonesource.com
Glass America, Inc. 2013-07-01 - Trade Sale
Chicago, Illinois · www.glassusa.com
Oncology Services International, Inc. 2008-04-01 - Buyout (LBO, MBO, MBI)
Montebello, New York · www.thinkosi.com
Cortz, Inc. 2008-04-01 - Secondary Sale
West Chicago, Illinois · www.intheswim.com
The Pay-O-Matic Corp. 2008-01-16 - Stake Purchase
Syosset, New York · www.payomatic.com
AdvantEdge Healthcare Solutions, Inc. 2006-11-20 - Buyout (LBO, MBO, MBI)
Warren, New Jersey · www.ahsrcm.com
Stone Source LLC 2006-08-14 15M USD Buyout (LBO, MBO, MBI)
New York, New York · www.stonesource.com
Richardson Foods, Inc. 2006-03-01 - Buyout (LBO, MBO, MBI)
Canajoharie, New York · www.rosesbrands.com
View All >>

Portfolio M&A

Company Acquired Add-On/Sale Date #
AdvantEdge Healthcare Solutions, Inc. 2006-11-20 Medrium, Inc. 2012-10-24 7
Warren, New Jersey · www.ahsrcm.com Morristown, New Jersey · www.medrium.com
AdvantEdge Healthcare Solutions, Inc. 2006-11-20 AHP Billing Services, Inc. 2010-03-24 6
Warren, New Jersey · www.ahsrcm.com Falmouth, Maine · www.ahpbs.com

M&A by Sector

Sector Current # Value All-time # Value
Building Materials - - 2 (17%) 15M (100%)
Business Services 1 (33%) - 1 (8%) -
Consumer Products - - 1 (8%) -
Consumer Services - - 1 (8%) -
Energy Services and Equipment - - 1 (8%) -
Financial Services 1 (33%) - 1 (8%) -
Food 1 (33%) - 1 (8%) -
Information Services - - 1 (8%) -
Information Technology - - 1 (8%) -
Medical Products - - 1 (8%) -
Safety/Security - - 1 (8%) -
Total 3 - 12 $15M

Acquisitions By Geo

State/Country Current # Value All-time # Value
United States 3 (100%) - 12 (100%) 15M (100%)
  New York 2 (67%) - 5 (42%) 15M (100%)
  Illinois - - 2 (17%) -
  New Jersey 1 (33%) - 1 (8%) -
  Michigan - - 1 (8%) -
  Indiana - - 1 (8%) -
  District of Columbia - - 1 (8%) -
  Colorado - - 1 (8%) -
Total 3 - 12 $15M

Acquisitions by Deal Type

Type Current # Value All-time # Value
Buyout (LBO, MBO, MBI) 2 (67%) - 9 (75%) 15M (100%)
Recapitalization - - 1 (8%) -
Secondary Buyout - - 1 (8%) -
Stake Purchase 1 (33%) - 1 (8%) -
Total 3 - 12 $15M

Exits by Deal Type

Type Total # Value
Trade Sale 3 (50%) -
IPO 1 (17%) -
Recapitalization 1 (17%) -
Secondary Sale 1 (17%) -
Total 6 -

Top M&A Advisors

Legal Deals
Morrison Cohen
1

Deal Values

buy # Total
< $100M 1 $15M
TOTAL $15M
Largest Stone Source LLC
$15M (2006-08-14)

M&A Connections

Deals
Acquired from
Investor(s)
17%
2 (17%)
Exited to
Investor(s)
33%
2 (33%)
Strategic(s)
33%
2 (33%)

FAQ

When was Founders Equity founded?

Founders Equity was founded in 1969.

What type of investor is Founders Equity?

Founders Equity is a private equity firm.

Where is Founders Equity headquartered?

Founders Equity is headquartered in New York, New York.

How much capital does Founders Equity have under management?

Founders Equity has 160M USD under management.

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