Private equity investing

Case Studies

Moss Case Study

Riverside seizes opportunities in a difficult market

Moss, the leading producer of custom tensioned-fabric structures, faced a sharp decrease in spending on industry convention displays due to the combined effect of the dot-com bust, a recession, and the travel shutdown after 9/11.

Rather than taking a loss on the investment, as did many investors in the exhibit industry, Riverside used the downturn as an opportunity to further invest. Riverside’s strong reputation and solid relationship with Moss’ lender gave the firm the leverage to acquire its overleveraged and struggling primary competitor. Thanks to teamwork and perseverance, Moss emerged from the downturn a far stronger company. Once the market recovered, Moss was able to make a second complementary acquisition. Over Riverside’s hold period, Moss quadrupled in size. Proof of Riverside’s success is seen by simply listening to the industry lingo; many people refer to any tensioned-fabric structure as a “Moss structure.”

Riverside persistence pays off:

  • Two add-on acquisitions:
  • Nichols, a world-class expert in fabric printing, which complemented Moss’ proficiency in structural design
  • Exhibit Architecture, a competitor based in Chicago, which strengthened Midwestern markets for Moss
  • Implementation of a user-friendly sales and operations management system Expansion into the retail and event markets, including a line of rental products

Gross IRR: 33%
Gross cash-on-cash: 4.2x

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