Initech Capital Deployment Roadmap, Q4 2026–Q2 2028

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Initech Capital Deployment Roadmap, Q4 2026–Q2 2028

DEC-ICAP-2026-01 and the A5 platform phases

Q4 2026
Critical
1

Frame & IC Decision

Decision DEC-ICAP-2026-01: how Initech Capital should deploy its next $200M of permanent capital over 24 months. The Investment Committee approves A5, a staged value-add distribution platform with a month-12 gate, on Dec 15, 2026. Initrode add-on diligence (A1) continues in parallel.

Decision: Dec 15, 2026
A5 ranks first (76.2)
$200M envelope, 24 months
business
Q1 2027
Critical
2

Source & LOI

Signed LOI for Project Magnolia, a Southeast specialty MRO distributor ($11.5M EBITDA). Project Cumberland term sheet for Initrode Hydraulics by Mar 31. The Initrode Canada integration tail wraps up in Q1 2027.

Magnolia LOI: Mar 31, 2027
Cumberland term sheet: Mar 31
Pre-gate cap: $110M
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Q2 2027
High
3

Diligence & Close

QoE, legal, environmental and culture diligence from Apr 1. QoE must confirm at least $10.5M adjusted EBITDA by May 28. Retention agreements for the top 12 managers and leverage at or below 3.0x before the Jun 30 close.

QoE complete: May 28, 2027
Close: Jun 30, 2027
Leverage ≤3.0x at close
warning
Q3 2027
High
4

100-Day Integration

100-day plan from Jul 1 to Oct 8, 2027: monthly close, reporting package, ERP migration, pricing waterfall and Initech values onboarding. Max three concurrent integrations across the portfolio.

100-day plan: Jul 1 – Oct 8, 2027
Max 3 concurrent integrations
Milestones ≥90% on time
analytics
Q4 2027 – Q2 2028
Strategic
5

Add-on Engine & Month-12 Gate

First add-on LOI for the new platform by Jan 31, 2028. The Jun 30, 2028 gate decides Scale, Revise, Partner or Hold: Scale needs EBITDA at 95% of plan or better, key-employee retention of 90% or better and leverage at or below 3.0x.

First add-on LOI: Jan 31, 2028
Month-12 gate: Jun 30, 2028
Runner-up: A1 Initrode add-ons
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