PRE-ACQUISITION – We believe in working very closely with each management team prior to making an investment. It is of critical importance that we become thoroughly familiar with the company’s industry, products, competition, and financial situation. This due diligence process, which is thorough but expedient, enables us to help structure and finance each transaction in the most appropriate manner.

A benefit of this process is that we get well acquainted with the management team and vice-versa. Because of the long-term, partnership-like relationship that we seek to form with management, we consider it essential that we get to know each other as well as possible before the closing of any transaction.

In most cases, we provide or arrange for all of the capital necessary to close a transaction. We maintain many active relationships within the financing markets and are fortunate to have a number of the largest financial institutions in the world as limited partners. We believe that these relationships, which have been built as a result of our many years of successful middle-market experience, help ensure that each company’s capital structure is properly designed.

Also, we normally assist in bringing together all of the external professional services required to close a transaction (legal , accounting, environmental , insurance, etc.).

POST-ACQUISITION – We consider the closing of each transaction as the beginning of a longer-term partnership with the management team. Together, we then seek to build the value of our shared investment. While the exact role that we play varies depending on the needs of each company, we believe that the extensive experience of our partner group can significantly enhance the value of these companies.

Typically, two of our partners maintain an active involvement at the board of directors level of each company. In this capacity, we essentially become a working partner alongside management. Our involvement usually includes:

• Assisting with the establishment of the company’s strategic objectives, then monitoring the progress towards those objectives over time.
• Acting as a “sounding board” for management’s ideas regarding growing the business.
• Helping in the identification, analysis, negotiation, and financing of complementary acquisitions.
• Ensuring that appropriate incentives are in place for management and employees that encourage and reward performance.
• Optimizing the financial structure of the company to take full advantage of changes in the company’s performance and/or changes in financing markets.