Quarterly Review  |  October 29, 2020

Gauge Capital Q3 Activity

As the Texas sun began to heat up in the dog days of summer, so did the M&A market. Gauge has seen a significant uptick in high quality deal flow and is excited to remain very active.

Add-on Acquisitions

Gauge completed two add-on acquisition in the 3rd Quarter of 2020​:

Circa (fka Infosoft Group) made a strategic acquisition of its biggest competitor, America’s Job Exchange, a provider of diversity recruitment and OFCCP compliance technology solutions.

Miami Beach Medical Group strengthened its position in the South Florida market through its acquisition of Clinical Care Medical Centers, an operator of eight medical centers dedicated to providing primary care services in Miami-Dade and Broward Counties.

Market Insights

COVID has kept everyone on their toes and has created some unique market dynamics

  • Deal Flow is back – As buyers & sellers have raced to get deals done prior to year-end, Gauge saw its biggest month ever in terms of new deal flow (September 2020). Gauge also noticed an uptick in the quality of deals coming to market
  • Add-on activity on the rise – Gauge saw as many add-ons through August 2020 as it did all of 2019

Add-on Searches

Business Services

  • Circa | Criteria: Providers of technology-enabled compliance solutions
  • irth Solutions | Criteria: SaaS-based solutions in the field service management sector
  • Schlesinger Group | Criteria: Remote qualitative data collection & quantitative data collection companies
  • TVC | Criteria: Provider of services to the independent trucking market

Consumer

  • Chaac Foods | Criteria: National brand quick service and casual dining restaurant franchisees

Healthcare

  • Comprehensive EyeCare Partners | Criteria: Ophthalmology and retina providers in the Western USA

Themes

Business Services & Technology

  • Commercial Services
  • Education, Certification and Training
  • Environmental Services
  • FinTech
  • Industrial Automation

Food & Consumer Services

  • Beauty Testing / Compliance
  • Food Processing
  • Ingredients
  • Paper / Packaging
  • Pet Food / Health

Healthcare Services

  • Behavioral Health (Autism and IDD)
  • Equipment Repair & Maintenance
  • Healthcare IT
  • Home Health and Hospice
  • Payor Services

About Gauge Capital

Gauge Capital is a private equity firm that partners with founders, managers and equity stakeholders of successful middle market companies to maximize their potential. Gauge invests in rapidly growing services and technology-enabled companies in the healthcare services, business services, industrial, consumer and food sectors. For more information, please contact Andrew Peix, Principal and Director of Business Development at apeix@gaugecapital.com.