We apply a highly selective process
We apply a highly selective process to finding the right businesses in which to invest. Our relationships with intermediaries and other referral sources have been carefully cultivated over the course of twenty years. Those relationships have resulted in a robust and high quality stream of transaction opportunities, often driven by our expertise and knowledge of our core industries. We then apply a rigorous, but efficient due diligence process to each potential opportunity to ensure that each transaction that is pursued is the “right fit” with our core principles.
We utilize a team of highly experienced operating partners
We endeavor to form collaborative partnerships with strong management teams and experienced operating partners. These operators help us evaluate investment opportunities, invest in the companies alongside us, and consult with, or serve as interim management for, the companies after a transaction is completed. We are an exceptional partner for experienced operators, evidenced by the fact that we have completed multiple transactions with the same operators in our core industries.
We believe that shared ownership produces the best results
We structure transactions so that former owners, operators, and key managers have a substantial ownership opportunity, if desired. We encourage existing owner/operators to “rollover” some equity into the new entities. We also provide a generous option program for key managers who can effect change and drive enterprise value. Shared ownership ensures all interests are aligned and business decisions are made with a view towards long-term value creation rather than short-term profits.
We utilize conservative and flexible capital structures
We invest equity to acquire control positions in companies that meet our investment criteria. In addition to equity, the balance of the capital structure is typically provided by third party lenders through a combination of senior and subordinated debt. We are conservative with our capital structures and the use of leverage to ensure that portfolio companies are able to meet their debt service requirements, while also having access to the funds necessary to support growth initiatives.
We believe patience is a virtue
We are under no pressure to put capital to work which helps us to be disciplined investors. Under our ownership, we can be patient with management teams and give our strategic initiatives time to be fully realized. We can also be opportunistic with the sale of our companies to make sure internal performance has been maximized and market conditions are right.