Monomoy invests in fundamentally sound businesses that face operational, financial or business challenges. We will buy any business that we can help, both performing and underperforming. We provide the capital necessary to strengthen businesses, we work with management to make businesses better, and we provide the strategic and operational support businesses need to prosper and grow.
Any private equity fund can promise to pay a few more dollars. Monomoy is a solution provider and strategic partner. We bring certainty and order to even the most chaotic sales process. Over the past ten years, Monomoy has acquired over 40 middle market companies from a variety of sellers (including family owners, public companies, lenders and financial sponsors) in a wide range of special situations (including bankruptcy, asset sales, equity sales and restructurings). Monomoy’s portfolio companies have generated over $2.5 billion in combined sales and have employed more than 10,000 people across four continents.
We invest in asset-intensive businesses that truly matter to their suppliers, customers and employees and make a difference in the markets they serve. Some face daunting challenges; others are doing well but could do better. We buy underperformers, turnarounds, and EBITDA-negative companies. And we buy healthy companies that can take advantage of further operational or strategic improvement. All of them benefit from partnership with Monomoy.
Our primary focus is middle market companies with $100 to $600 million in annual sales, including manufacturing, industrial, distribution, and consumer products businesses. We review add-on transactions with companies having as little as $40 million in annual sales.
We can close difficult, multi-party transactions in as little as 30 days without a financing contingency, and we don't shy away from the complicated deals that deter other buyers. We buy businesses through simple asset or stock sales, corporate divestitures, out-of-court restructurings, Article 9 transactions and bankruptcy. We work hard to involve management, employees, vendors and customers in every acquisition. And we keep our word at every stage of the process.
Monomoy is passionate about improving every aspect of the companies we buy, and our most important job is inspiring the managers and employees of our businesses to share our passion. We are experts in financial and supply chain management, process improvement, strategic sales, and the lean manufacturing principles of the Toyota Production System. Our operating and finance professionals work alongside management in every Monomoy company to create a culture of continuous improvement throughout our portfolio.
We are comfortable working with incumbent management, bringing in a new team, or supplementing management with experienced industry executives. We're also proud of our history of working constructively with trade unions, and we often negotiate new collective bargaining agreements in connection with our investments.
We believe that even the best companies benefit from our passion for business improvement. The Monomoy system works: we have never failed to eliminate waste and improve profitability in a business that we have acquired.
Monomoy builds great companies, not just profits. We own our portfolio companies for as long as we can add value through business improvement or strategic acquisitions, usually from five to seven years.
Throughout our ownership, we provide Monomoy companies with the resources they need to prosper and grow through every stage of the business cycle — working capital management, materials sourcing, facility consolidation, manufacturing improvement, process efficiency, and product mix improvement. Following an initial period of focused profit improvement, our companies typically extend their footprint through both acquisition and organic sales growth.
At Monomoy, we make money for our investors by making the businesses we buy better. We sell our portfolio companies as healthy, profitable and sustainable businesses poised for continued success.
The Monomoy Story
Just below the elbow of Cape Cod, the Monomoy Islands stretch 10 miles into the waters of Nantucket Sound and the Atlantic Ocean. Thousands of ships sank there in search of safe harbor in the 17th and 18th centuries, and the treacherous currents off Monomoy forced Pilgrim settlers to enter Cape Cod Bay instead of continuing south to Virginia. In 1828, the federal government built the Monomoy Point Lighthouse to guide commercial vessels to ports in Connecticut and New York or safely out to sea.
In 2005, we built Monomoy Capital Partners to help both healthy and challenged businesses navigate the currents of change. We give our companies access to the resources and expertise they need to succeed in the rough waters of commerce. We guide them to safe harbor when times are tough, we help them avoid obstacles when things are going well, and we deliver them to safe passage in the course of our ownership.
Monomoy Production System
We work with a lot of smart people in our portfolio companies. The Monomoy Production System makes them smarter. At Monomoy, we have adapted the lean manufacturing and quality production principles known as the Toyota Production System to create a culture of continuous improvement throughout our companies. For lack of a better name, we call our approach the Monomoy Production System, "MPS" for short. Our operations group works closely with management using MPS to evaluate every business process, determine where improvements can be made, and implement a series of waste reduction projects in every company, every year.
But what really sets us apart are the Monomoy "boot camps" that we run throughout the portfolio. Each quarter, we bring together 15 to 20 managers from across the Monomoy portfolio for two weeks of intense training on lean manufacturing and the practical "shop floor" application of MPS. Participants work in teams of five, and each boot camp is held at a different Monomoy company. The Monomoy boot camps have now trained over 100 team members in the Monomoy Production System and have produced off-the-chart improvements at all of our portfolio companies.
Monomoy Production System