Our Approach
Based in Winona, MN, CVI holds ownership interests in various construction-related businesses and provides business management and support services to our affiliated companies. Our primary focus is investing in and growing local construction companies which fall within our specific company criteria. We define a local construction company as a business that generally focuses its operations on a specific local market, typically around one metropolitan area.
CVI has knowledgeable, hands-on investors that bring significant resources with our investment. We focus on modest-sized construction companies with solid operations and management. Each affiliated operating company’s top management will own a significant share of their business.
Unlike private equity firms, CVI’s approach is to work with businesses for the long haul. We invest in your company to increase your long term success, and we seek out companies where this relationship can last for many years to come.
Investment Strategy
CVI principals are experienced construction, business and financial people. We take a substantial long term ownership position in each company alongside our management owners. Our dedicated team works with each company’s business manager in the business support areas, allowing the affiliated companies management to focus the majority of their attention on the construction business.
We generate our profits primarily through our ownership shares in individual companies. As owners, our incentives are aligned with the other shareholders at each affiliate, and we only profit from our investment if the company itself is profitable.
The basis of all company investments is the concept of long term investing with a margin of safety. CVI will invest significant resources, over many years, in a geographically diverse group of construction businesses, whose earnings can reasonably be expected to grow with their local economies.
Construction is a cyclical business. A margin of safety in the initial investment price, which typically involves an earn out for payments beyond net asset values, will help insure each company’s continuation and growth during the inevitable ups and downs in its local construction market.
Company Criteria
CVI’s areas of interest include construction-related companies that generally meet the following investment criteria.
- Companies in the upper Midwest and south-central Florida markets
- Businesses that are currently generating $100K to $500K of EBIT
- General contractors with revenues generally between $10 million-$30 million and/or heavy civil contractors with revenues typically between $3 million-$10 million
- Businesses that have current or potential manager shareholders as our partners in the company