Stage 1: Strategy Development and Partnership with World Class Management Team
We believe in a management-driven focus when it comes to LBUs. We partner with senior management teams who have a demonstrated capability to lead companies in their respective industries. We partner with management teams to help identify opportunities and then work together to execute the strategies.
Stage 2: Private Equity Partner Selection
Simultaneous to our formulation of the LBU strategy we set out to find the best Private Equity partner for each strategy and management team. While terms are important, we also seek equity partners who are familiar with the investment space and have good chemistry with the management team.
Stage 3: Identifying the Competitive Universe
After strategy development we work to set the parameters of our acquisition search. Once the parameters are set we build proprietary databases that are used to identify non-auction deal flow. Over time these databases become a significant competitive advantage against competing acquirors. Information gleaned at this stage will often be closely-guarded such as customer concentration, revenue data, service/manufacturing capabilities and geographic locations.
Stage 4: Approaching Target Companies
Target companies are identified and categorized by their specific verticals and relative function within the value chain. At this stage, we assess fit and motivation through engaging Target management teams in real discussions of their current capabilities as well as future plans. To the extent possible, we help them to creatively visualize their company as part of a greater whole in which their share grows exponentially rather than linearly.
Stage 5: Closings
With the assistance of the Private Equity firm, a thorough due diligence study is conducted. At this stage, management teams of both Platform and Target are actively in discussion facilitated by the PE firm. Employees of either or both companies may still be unaware of a pending merger.