We have over 50 years' collective experience identifying, acquiring, managing and growing small companies.
Our approach is simple. We rigorously and methodically work to identify and acquire companies with substantial untapped potential and then work closely with the companies' owners and management teams to accelerate, strengthen and scale the business while building durable value over time.
Proactive Deal Generation
We take a systematic, data-driven, theme-based approach to identify promising service businesses at the lower end of the middle market across a range of industries.
Our strategy is based on our core beliefs that:
- Service-oriented businesses are more readily able to create sustainable competitive advantage, which produces critical investment characteristics such as growth, high margins, stable customer relationships and strong cash flows.
- Lower middle market companies often exhibit areas for improvement such as incomplete management teams, lack of performance-based incentives, and underperforming financial reporting and controls, which present real opportunities for value creation not typically found in larger, more developed businesses.
Methodical Due Diligence and Investment Process
Once potential investments are identified, we combine a fair, transparent and rigorous investment evaluation process coupled with diligent investment execution. We believe our approach materially contributes to a successful closing, followed by a successful relationship with our portfolio companies, and differentiates us from other firms working in the lower middle market.
The 100-Day Plan
The periods leading up to and immediately following an investment are pivotal in setting the path and critical activities for the company. During the diligence process, we draft a comprehensive 100-day plan and conduct a market mapping that identifies immediate growth opportunities for the business.
This plan is shared with management, whose thoughts are incorporated to create a common outlook for the business and alignment around key drivers of value creation. Key components include reporting, compensation plans and corporate governance. This work leads to the development of the strategic plan.
Active Portfolio Management
We’ve spent our careers helping build businesses by partnering with successful management teams and operators. While it is the managers who run the companies on a day-to-day basis, we provide expertise, know-how and a full complement of resources to help improve key areas such as:
- Management team skill and depth
- Corporate governance
- Financial and operational reporting and controls
- Incentive compensation plans
- Strategic planning
- Information technology
- Operational efficiency
Our experience has shown that planning, alignment, transparency and accountability are critical contributors to success. We work with management teams to develop reporting based on Key Performance Indicators and closely monitor performance for the life of the partnership.
Ultimately, our partnerships work because we’re able to take the articulated goals for each portfolio company and support management in the development of strategies and tactics.