JBA Capital seeks to invest in niche businesses at the lower end of the middle market. In this segment, the number of attractive acquisition opportunities far exceeds the amount of capital pursuing such transactions. This creates an opportunity to make investments at fair valuations, yet below the multiples of larger companies where fewer opportunities exist.
A majority of these businesses are owned by baby boomers that intend to sell their businesses over the next 5-10 years. JBA Capital hopes to capitalize on this trend and position the firm as a preferred resource for business owners in the Southeastern United States.
JBA Capital’s Management Team has over 130 years of collective experience underwriting transactions, managing companies and improving operations. The team has a long-term view when it comes to building better businesses and believes that decisions regarding a portfolio company should be weighed by whether or not the outcome will create value for all stakeholders (customers, employees and owners).
The team’s primary focus is to cultivate and develop the incumbent management team within an organization and when necessary recruit talent outside the company to compliment the current management team. In all investments, the key to long-term success is the quality of the management team.
JBA Capital’s current portfolio is comprised primarily of manufacturing companies. This interest in manufacturing stems from the team’s extensive operational improvement and growth experience with manufacturing companies. Further, the team believes long-term global macro economic conditions and US fiscal policy will continue to create a currency situation that favors US manufacturing. In addition to manufacturing, JBA Capital will also consider investments in operational intensive service businesses.