As a mid-market service provider, our own investment activities focus on <$5 M mezzanine financing, $10 M+ private equity transactions with amounts depending upon  whether other partners are involved.  For our own investment considerations, we are most successful in life sciences, advancing technology firms, services, and distribution. If you believe you meet this criteria our capital formation group will be happy to evaluate your opportunities.  

Connecting entrepreneurs and innovators with those who use capital to advance business activities 

As an active global private investment firm, the equity support services we use for ourselves we make available to you. Opportunities that may not be right for us we recommend to others we know who are looking for a like kind opportunity.  We remain available to provide whatever support they and you may need to accomplish your transaction.  

Private equity is one of the most active areas of financial management today. Our strength comes from many years of providing full service support for the private equity investor from financial analysis coordinated with market studies, designing and performing due diligence procedures, and knowing the factors of value for target companies Through our many contacts in the industries we serve we can successfully match your industry and need with the myriad of partners with whom we deal.

How do Private Equity Investors Create Value?

The rapid growth in the scale and success of Private Equity has brought with it increased focus.  One study analyzing the top 100 exits in each of the US and Western Europe, ranked by entry enterprise value (EV) reveals that Private Equity-owned businesses outperform the market:

• Average annual EV growth rates of 33% in the US and 23% in Europe against public company equivalents of 11% and 15% respectively.
• Average EBITDA growth rates that were 17% higher than equivalent public companies.
• Average growth of over 80% in enterprise value over an average hold period of approximately three years.

While the public may believe that Private Equity ownership is synonymous with short-term cost-cutting, studies show the bulk of growth coming from organic revenue growth, and acquisitions. Cost reduction is the third most important element, but employment levels remained the same, or higher, at exit versus entry in 80% of US deals and 60% of European deals.

So what are Private Equity’s ‘secrets of success’? We have identified eight major factors that explain the growth in value of their investments.  These success factors can be used to increase the value of almost any transaction.

One of our strongest areas of expertise lies in reorganizing an entity that has an excellent business idea but has gotten mired in one or more of the following:

• Need for new management
• Lack of market analysis and product or service positioning
• Need for process analysis to lower costs to remain competitive
• Struggling to fit into the global marketplace

We have consistently been able to analyze situations and determine what the next step may be to regenerate high value growth for these troubled situations.

Reforming entity structure with revised capitalization is just one more tool in which rapid growth can be unleashed.  We know that with the right capitalization, entities are propelled forward to realize their full potential.