ABOUT KRATOS

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MIDDLE-MARKET –  DELIVERING PREMIUM VALUE

Kratos Capital is a privately held, mergers & acquisitions advisory firm. Our principals have experience creating and managing varying liquidity solutions, unique to each client. What makes us different is our strict personal attention on each individual client. Whether your desire is a merger, growth capital, acquisition, or recapitalization, our firm can make a market for you. We measure the success of our process by the results it produces. Routinely, ours produces several attractive initial offers, and most of our clients close a deal at or above the upper end of our initial valuation range. When we are given the honor to manage a clients exit process, we provide a peace of mind from having done the right thing for your family, your company, your employees and your customers.

OUR FOUNDERS

VALUES – CHARACTER & COMMITMENT TO OUR CLIENTS

Our Principals have experience in a variety of strategic liquidity solutions including sales, divestitures, and mergers. We also work extensively with companies committed to expansion through acquisition.

We are an experienced, highly effective firm specializing in managing transactions with capitalized values from $5 million to $300 million. The firm provides industry-tailored investment banking expertise in order to help owners maximize the value of their investment of time, money, and hard work. Each of our clients is represented by seasoned bankers who bring a wealth of knowledge and experience. Our bankers comprise an aggregate of over $1 Billion dollars in completed transactions, resulting in over 200 deals completed, complimented with a century of combined deal making on behalf of the private middle market.

We pride ourselves in creating customized solutions that result in maximizing transaction value for sellers. Each company reflects the character and characteristics that its owners bring to it. No two companies are ever alike. Their exit strategy shouldn’t be either. We believe that the “cookie cutter” approach often proposed by other firms to help their clients is rarely the most efficient or cost effective approach; in most cases this approach creates deal fatigue and a frustrated client. Allow one of our bankers to perform a customized Economic Reality Analysis (ERA)© and together we can determine a real-time sense of your exit reality.

TESTIMONIALS

  • "Confidence - that is the true, defining takeaway from our experience with Kratos Capital. In every phase of the deal we received personalized, relevant and strong counsel that gave us the confidence that we were making the right decisions the whole way through. There is no doubt in my mind that they were uniquely suited to provide the best possible service with their intelligent, forthright and determined approach. They are absolutely the guys you want on your side of the table. "

    Seth Mitchell ReedMitchell Agency, Inc.
  • "Kratos Capital managed our process beyond our expectations. We felt the Kratos Capital team structured our deal in a way that put more money in our pocket at closing. Our family would welcome the opportunity to recommend Kratos Capital as the “go to” firm when selling a sizable middle market business."

    Ron & Becky Armstrong Clear Guard Products, Inc.
  • “After interviewing several potential investment banks, I felt the team at Kratos Capital was the most knowledgeable. Their boutique feel meant I wouldn’t get lost in the mix. The sale of my business proved my decision was the right one. I would highly recommend Kratos to anyone who asked.”

    Stuart Feldman Gulf & Basco
  • "Kratos Capital provided unmatched, hands-on, senior-level attention throughout my transaction. The team worked tirelessly to execute a highly disciplined process in order to maximize my sale price. Not only did Kratos provide expert negotiating support, but the team also devised a unique transaction structure, which overcame a potential deal breaker and created additional shareholder value."

    Dave Meheen Meheen Manufacturing, Inc.
  • "Kratos Capital exceeded our high expectations in every way. From start to finish, they were singularly focused on ensuring the transaction closed by managing the deal and their client in a professional manner."

    Sage Harrison Trinity Private Equity
  • "Our experience with Kratos Capital has exceeded our expectations. We truly appreciate the professionalism and the discretion that was shown by the Kratos Capital team. We were worried that our employees would get the wrong impression, but most of them seemed to embrace the idea that we wanted to be sure that we had a healthy organization and would continue to grow in the future. Brian and I would highly recommend Kratos Capital to any company seeking a sale or just the need for value improvement. We certainly are better for it."

    Brian & Joan Hammer President & Chief Financial Officer, Any time, Inc.
  • "The Kratos Capital team was great to work with. Their industry knowledge, M&A experience, and professionalism were invaluable in completing this complex transaction and creating a successful outcome. They treated our sale process with considerable care and attention, were with us at every turn, and left no detail, no matter how small, to chance."

    Jim Lee Palmer Tanks Of Texas
  • "I sat across the table from the Kratos Capital team and was impressed with their professionalism, knowledge, and integrity. They are experienced bankers and go the extra mile for their clients."

    Cecil O' Brate Palmer Manufacturing
  • "Kratos Capital did an outstanding job representing us on the sale of our company. They are very knowledgeable bankers with high integrity and a great network."

    Terry Gilmore Permian Machine & Fabrication
  • "Kratos Capital is a recognized name in the middle-market M&A community. They are creative, tenacious, and skillful deal makers who focus on seeing that their clients are successful."

    Johnny Kidd Chief Executive Officer, Oil Works

TRANSACTIONS

OUR COMMITMENT TO YOUR LIFE’S WORK

We measure our success by the results we produce and the satisfaction of our clients. This partial list of completed transactions demonstrates our commitment to the private middle market. Our core values, character, and unvarnished advice are the foundation of our endeavors. We provide our clients with a managed and balanced process from start to finish, creating liquidity through a high quality outcome of the transaction, and − most importantly − being responsible with your life’s work.

Private Investment Group Invested $25MM In Growth Capital: JEM Beverage Co., Pilot Point, TX Beverage Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To JEM Beverage Company – Western Son Distillery

Meheen Manufacturing and Inline Filling Systems Portfolio companies of Filling Machines & Systems (“FM&S”) Acquired By: Mangrove Equity Partners co-sponsored by Prisma Group $50MM Niche Manufacturing Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Filling Machines & Systems (“FM&S”) .

ReedMitchell Agency Acquired By: The Company of Others, Houston, TX Undisclosed Adverting & Media Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To ReedMitchell Agency

Palmer Manufacturing & Tank, Inc. Acquired By: Worthington Industries, Columbus, OH (NYSE: WOR) $113.5 MM Industrial Manufacturing Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Palmer Manufacturing & Tank, Inc.

ClearGuard Products Acquired By: Menu Designs Creative Menus & Folders $45MM Specialty Manufacturing Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To ClearGuard Products

Burlington Pharmacy Health Care Acquired By: Walgreens, Deerfield, IL (NYSE: WAG) Burlington Pharmacy Health Care $21mm Pharma Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Burlington Pharmacy Health Care

Premium Acquired By: Emerson Electric, St. Louis, MO (NYSE: EMR) $104MM Semiconductor Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Premium Valve Components, Inc.

Another Line, Inc. Acquired By: Kinderhook Industries, New York, NY $12MM Specialty Clothing Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Another Line Inc.

Windo-Shade Distributors, Inc. Acquired By: Innovus Investment Holdings, LLC, Houston, TX $51MM Distribution Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Windo – Shade Distributors, Inc.

Bond-Coat, Inc. Recapitalized With: Main Street Capital Corporation Houston, TX (NYSE: MAIN) $28MM Manufacturing Energy Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Bond-Coat, Inc.

Salt Life Beach Apparel, Jacksonville, FL Acquired By: To The Game , Greenville, SC Undisclosed Lifestyle Retail Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Salt Life Beach Apparel

Meheen Manufacturing, Inc. Acquired By: Evolve Capital LTD, Dallas, TX $25MM Niche Manufacturing Industry

A Kratos Capital Deal Professional Acted As Exclusive Advisor To Meheen Manufacturing, Inc.

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OUR PROCESS

BEGINNING WITH THE END GOAL IN MIND

Investment banking conjures up images of Wall Street hot shots and mammoth blue chip corporations. In reality, mergers & acquisitions play a key role in the growth of mid-sized companies in every industry. Engaging the services of investment bankers can considerably enhance the sale of privately held businesses, providing critical valuation counsel, identifying the best potential buyers, providing a competitive auction and strategizing ideal terms. The benefits of working with firms like outs is measured in both money and time.

A successful outcome begins with a proven process. Our focus is always on how decisions along the way impact the outcome. Below is a top-level overview of the transaction process, giving you a glimpse of what to expect when you decide to sell your business.

Step I

EDUCATION OF ALTERNATIVES

Before engaging in a transaction, we take the time to educate our clients about all the alternatives available in today’s market. We conduct extensive company and industry due diligence to understand your company’s strengths and weaknesses, opportunities, economic benefit and finally competitive niche. This includes discussions about your personal and financial objectives as well as range of value expectations. We make sure you have proper expectations and thorough understanding of the entire process before we begin so you can make the best decisions for you and your company.

Step II

BUILD THE MARKET

Kratos examines your company from the perspective of a potential buyer or investor. We work closely with you and your management to develop our detailed, confidential, Offering Memorandum that tells your company’s unique story—the skill of your leadership team, and the competitive advantages you have developed. Valuations don’t sell businesses; the proper forward looking buy-side mindset, including a low risk, scalable business, does! We accomplish this critical launch point by proactively researching purchasing behavior in our client’s industry, either through our direct relationships, or through our vast libraries of transactions. Our deal team doesn’t use broad brush strokes. The Kratos deal team builds the market with our client involved and approving our reach out every step of the way.

Step III

CREATE MOMENTUM – NEGOTIATING & CLOSING

We know the middle market, and middle-market buyers know us. As a result, we can present your business on a confidential basis to a large group of qualified and interested buyers, both strategic and private equity, and family office’s. We don’t send out mailers, or list your business on a website. That’s just flat out lazy. Our process accomplishes this critical momentous launch point by proactively reaching out to every potential buyer personally. Again, our deal team doesn’t use broad brush strokes. Doing so can and will damage confidentiality. After our client approves their mutually exclusive market build, our deal team develops the proper pitch, rolls up their sleeves, and goes to work. Kratos has a well-documented history of success, where other firms have fallen short. This is the result of experience as well as the proper neoclassical outlook. Everyone talks about the HIGHEST value for their client’s business. Most advisory firms fail to create the optimum economic benefit required to get the highest price – that’s the Kratos advantage!

Once we’ve established the preliminary commercial terms of your deal, we manage as well as help you, your accountants, and attorneys navigate through the due diligence process, contract negotiations, and closing.

  • THE BEGINNING

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  • THE MIDDLE

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  • THE END

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Interested in Starting the Process?