Guiding Principles
Our investment philosophy follows guiding principles:
- Partner up with an experienced entrepreneur and/or management team
- Each part plays a specific role in the partnership
- We value our partner’s competencies and experience
- We act as “hands-on” shareholder
- Invest in a business plan
- Value creation (investment’s profitability) is based on the company’s growth, financial improvements (operating improvement, cash management, reengineering process of poorly managed businesses, asset stripping) and potential for consolidation (build-ups, etc.)
- The objective is at least to duplicate the EBITDA in 4 years
- Align management’s interest through equity compensation schemes
- Stock options, earn out, co-investment, among others
- Defined exit strategy
- Thorough analysis of exit opportunities are performed before investing
- Profitability analysis is projected using the same exit multiple as the acquisition multiple