We partner with top caliber executives to acquire middle market businesses where we can establish a path to value creation.
To execute our strategy, we bring together the following three key elements in each transaction:
Top Caliber Executive
We recruit exceptional executives who assist in selecting and acquiring a company where he or she can develop and lead a tactical value creation plan. These executives are well-established and positioned to recruit top talent in their industries. Furthermore, the executives with whom we partner have successfully led businesses much larger than the businesses we acquire; our executive partners have typically run a P&L of $1 billion or greater.
Solid Middle Market Company
We acquire well-positioned businesses with value creation opportunities that are good matches with our executives’ skill sets and industry expertise. Since 1997, we have refined our investment strategy to include a sector focus on the industrial products, consumer products and business services industries. We typically invest $30 million to $150 million of equity into businesses with an enterprise value of $100 million to $500 million. We are generally the control investor in each of our portfolio companies.
Path to Value Creation
We identify growth and operational improvement opportunities that can be implemented by our seasoned executive partner. Specific value creation initiatives are tailored to each opportunity but most often fall under the following categories: improving operating performance (growing revenues, improving manufacturing efficiency, etc), improving working capital and asset utilization, enhancing the business with add-on acquisitions, developing the management team and creating a value-added board of directors.