Madeira Partners Research
Advisory Approach
Madeira Partners is a boutique investment banking firm founded in 1998 by Justin Besikof, specializing in mergers and acquisitions advisory services for closely held family-, founder-, and management-owned companies in the lower middle market. The firm operates with a clear thesis: successful M&A transactions require accounting for the myriad financial, emotional, and personal variables inherent in monumental business decisions. Their name references Madeira Island's challenging airport runway—symbolizing how their team navigates complex M&A landscapes with precision and skill.
The firm's sweet spot is founder-owned businesses in the $10M-$250M enterprise value range where operational complexity and personal considerations intertwine. They take the time to understand clients' business as well as their goals, objectives, expectations, and dreams—both financial and personal—so they have a crystal clear view of the big picture before developing custom strategic plans.
Madeira Partners explicitly positions itself against "any investment bank can find you a buyer" approaches. Instead, they emphasize finding the RIGHT buyer through exhaustive, competitive processes. Their tagline—"Your Life's Work Deserves Our Best Work"—encapsulates their philosophy that these transactions represent torch passings, not just sales.
Sector Focus
Madeira Partners has built particular expertise across several verticals, evidenced by their transaction history:
Manufacturing: Precision machining and contract manufacturing (Harvey Vogel Manufacturing—AS9100, ISO 9001, ITAR-certified aerospace/defense supplier), metal fabrication, industrial coatings (TMI Coatings—specialty painting and coating contractor for infrastructure), and building products.
Construction & Engineering: Commercial mechanical contractors (Gilbert Mechanical—HVAC, electrical, plumbing, fire protection, building automation), building enclosure systems (Merit Contracting—roofing, waterproofing, wall panels, glazing), and architectural specialty products (Building Material Supply, Inc.—Division 10 products, Cook & Boardman Group—commercial doors, frames, hardware, electronic access control).
Healthcare Services: Ophthalmology platforms (Whiting Clinic—LASIK surgery), medical education and events (Music City SCALE—aesthetic medicine conference, HMP Global—healthcare events education). They understand physician practice dynamics and the unique considerations of healthcare sellers.
Consumer Products: Educational toys and games (MindWare—global SKU sourcing, mass retail and e-commerce channels), direct-to-consumer brands (Reach International Outfitters—travel and adventure products).
Business Services: Healthcare communications, educational events, and media platforms serving professional communities.
Deal Track Record
Madeira Partners has completed 40+ transactions across their 25+ year history, with deal sizes typically ranging from $10M to $250M in enterprise value. Their track record includes:
Notable Transactions:
- MacQueen Equipment → Rotunda Capital (management buyout/private equity recapitalization)—distributor of specialized vehicles and equipment for municipal, airport, emergency, utility markets
- Whiting Clinic → Vision Group Holdings/Audax Group (healthcare recapitalization)—top 1% LASIK surgeon practice with 100,000+ procedures
- Gilbert Mechanical Contractors → Therma/Gempspring Capital (PE add-on)—commercial mechanical services provider, HVAC/electrical/plumbing/fire protection
- MindWare → Oriental Trading/Berkshire Hathaway (strategic sale)—educational toys/games manufacturer, transaction personally approved by Warren Buffett
- Merit Contracting → APi Group (NYSE: APG)—commercial building enclosure systems, Southern Minnesota/Northern Iowa
- Harvey Vogel Manufacturing → Westbourne Capital Partners—precision metal stamping, 250 employees, aerospace/defense/medical/industrial markets
- TMI Coatings → PCM Companies—industrial coatings contractor, Fortune 1000 and government customers nationwide
- The Cook & Boardman Group → Platinum Equity/Littlejohn & Co.—80+ locations, commercial doors and access solutions
- Reach International Outfitters → Lightspring Capital—direct-to-consumer travel/adventure brand
- HMP Global—healthcare events and education, 450+ annual events, 2M clinicians engaged
- Building Material Supply, Inc.—architectural specialty building products, Division 10 specialist
- Music City SCALE—premier multispecialty aesthetic medicine forum, 2,000 annual attendees
Their deals consistently feature both strategic buyers (including Berkshire Hathaway companies, public companies like APi Group) and private equity sponsors ranging from lower middle market specialists to multi-billion dollar firms.
Process & Fee Structure
Madeira Partners runs a structured six-step sell-side process:
- Understanding Business Owner Goals: From personal goals like financial freedom and retirement to finding the right steward for long-standing businesses and employees
- Valuation: Extensive analysis of the business, industry trends, and market comparables to inform valuation ranges
- In-Depth Review and Marketing Documents: Comprehensive Confidential Information Memorandum emphasizing growth opportunities and company highlights
- Identifying and Contacting Prospective Buyers: Access to extensive resources and proprietary databases to identify and vet strategic and private equity buyers, with client-approved buyer lists
- Competitive Process: Multiple rounds of bidding with a narrowing funnel of buyers to draw out best and final offers
- Negotiations and Closing: Oversight of due diligence and representation throughout negotiations to maintain value and ensure fair deal terms
Their fee structure follows industry-standard boutique investment banking models: monthly retainers credited against success fees, with success fees calculated on a percentage of transaction value. They require exclusivity and maintain that their value comes from running exhaustive, competitive processes rather than limited, buyer-specific approaches.
Buyer Network
Madeira Partners maintains relationships with strategic acquirers and private equity sponsors across the lower and core middle markets:
Private Equity Relationships: Rotunda Capital, Audax Group, Gempspring Capital, Lightspring Capital, PCM Companies, Westbourne Capital Partners, Platinum Equity, Littlejohn & Co., Susquehanna Growth Equity
Strategic Buyer Categories: Public companies (APi Group—NYSE: APG), Berkshire Hathaway subsidiaries (Oriental Trading), national platform companies, family offices
Their transaction history shows approximately 75% private equity buyers and 25% strategic buyers, reflecting lower middle market dynamics where private equity sponsors are active acquirers of founder-owned businesses.
Competitive Positioning
Madeira Partners differentiates through:
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Senior-Level Attention: "When you work with us, you work with the A-team: Justin, Jake, and Tom." No junior staffing, no bait-and-switch—clients work directly with partners throughout the engagement.
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Personal Experience as Business Owners: As entrepreneurs themselves, they understand what it takes to run a successful company and the factors involved in choosing to sell. This creates genuine empathy for the seller's journey.
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Operational Understanding: Team backgrounds include corporate development roles and hands-on operating experience, not just investment banking.
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Emotional Intelligence: They explicitly recognize that M&A decisions are deeply personal, not just financial. Their approach addresses the human dimensions of selling a life's work.
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Small Firm, Big Results: They leverage their small size as an advantage—approachable, responsive, nimble, cohesive. The experience feels like meeting with your own management team.
Not a Fit If
Madeira Partners typically declines:
- Businesses below $10M TEV (their process economics require minimum deal size)
- Founders wanting limited buyer outreach or off-market deals (their value is in exhaustive competitive processes)
- Pure asset sales or liquidations (they focus on going-concern enterprises with growth stories)
- Situations where the seller isn't genuinely motivated or realistic about valuation
Team
Justin Besikof—Founder and President: Founded Madeira Partners in 1998 after investment banking role at large Chicago firm and consulting at Big Four accounting firm. Education: University of Wisconsin-Madison BBA Accounting, MS Finance, MA in Taxation. Lives in Wayzata, MN with wife and three daughters.
Jake Fishman—Partner: Experience in M&A, private equity transactions, corporate finance, special situations advisory, and financial restructuring. Previously at Houlihan Lokey and Piper Jaffray Technology/Business Services investment banking group. Education: University of Wisconsin-Madison BBA with double major in Finance and Accounting. Specializes in representing sellers of closely-held, family-owned, and private equity-sponsored companies.
Tom Astrup—Partner: Experience in sell-side and buy-side M&A, private equity transactions, corporate development, and corporate strategy. Previously in corporate development at Pediatric Home Services, investment banking at Cherry Tree & Associates, transaction advisory at Dixon Hughes Goodman, and audit at PwC. Education: University of Minnesota-Twin Cities BBA with double major in Finance and Accounting, holds CPA (inactive).
The three-partner structure ensures every client works directly with senior professionals who have each closed dozens of transactions across multiple economic cycles.
Geographic Coverage
Based in Wayzata, Minnesota (Twin Cities/Minneapolis-St. Paul area), Madeira Partners serves clients nationally from their headquarters at 315 Manitoba Avenue Suite 100. Their Twin Cities location provides central U.S. access with strong regional networks in the Midwest, while their transaction history demonstrates capability to serve clients in any geography.