Investment Strategy
Our investment strategy is built on the FANGS Framework, our proprietary five stage methodology for finding, acquiring, stabilizing, growing, and scaling lower middle market technology companies. We acquire US-based technology businesses with a long history of stable revenue and cash flow, corporate divestitures, and companies that need to be turned around. We do not acquire businesses with the intent of managing them for short-term gains. We invest to build real, lasting value, and we are honest about the fact that value creation leads to a well-timed exit that rewards the business, its people, and our investors.
The FANGS Framework
Every acquisition MTG pursues runs through FANGS, our proprietary five stage methodology for sourcing, closing, stabilizing, and growing technology companies. It is applied consistently across both healthy, cash flowing businesses and distressed situations. The discipline stays the same; the tactics adapt to what each company actually needs.
Find
Proprietary deal sourcing built on real operating relationships, not broker lists. As part of our sourcing strategy, we leverage the active client relationships and industry connections of each portfolio company to identify new acquisition targets, giving MTG visibility into opportunities before they ever reach a banker.
Acquire
A disciplined, unified acquisition process from first conversation to close, structured to move quickly without cutting corners on diligence, and built around terms that are fair to the seller and defensible to our investors.
Neutralize
The first 60 days post close. For healthy companies, this means identifying and eliminating hidden liabilities, locking in key talent, and establishing clean reporting. For distressed companies, it means stopping cash burn, stabilizing customer relationships, and resolving compliance exposures immediately.
Grow
From day 61 through year one, we apply targeted growth plays, revenue acceleration, margin expansion, cross-sell into our portfolio’s existing client base, and operational automation, calibrated to each company’s specific starting point.
Our Approach
Create value through strategic planning and operational enhancements.
Collaborate with our management teams and provide support without getting in the way.
Promote best practices gained from our successes in buying and building businesses.
Align the interests of sellers, managers, investors, and executives.
Deal Evaluation
MTG evaluates every opportunity through the FANGS Framework, giving us a different perspective than traditional financial and strategic buyers. We strive to generate sustainable earnings growth and build genuine enterprise value rather than force a deal to fit a fixed timeline. Our approach gives us flexibility in acquisition structure and the ability to work with business sellers to achieve their unique goals. We partner with business owners to execute their exit strategy, preserve their legacy, ensure their employees thrive, and capture the value of their business.
Technology Focus
- Software
- Cybersecurity
- IT & Business Services
- Cloud & XaaS
- Emerging
Technologies - Artificial Intelligence
Business model
We look for the underlying characteristics of a strong technology business, whether the company already exhibits them or has the potential to reach them through the Neutralize and Grow stages of the FANGS Framework.
- Recurring revenue
- Healthy margins
- Attractive working capital cycle
- Differentiated products/services
- Low customer concentration
- Defensible market position
Transaction types
• Acquisitions
• Recapitalizations
• Founder/owner Liquidity
• Management Buyouts
• Add-on Acquisitions