We structure each transaction based on the objectives of the seller, and we understand that no two situations are exactly alike. Most of our owner-operator partners are looking to diversify their assets but want to retain a significant equity position and continue to run the business. For family-owned businesses facing succession issues, we can provide liquidity for the non-operating family members and give the remaining family members that are still active in the business greater operational control. We have also successfully backed experienced industry executives as they pursue a consolidation strategy, and we have provided the capital to executives to buy a company that they manage, but do not own. Regardless of the situation, we are accustomed to thinking outside the box to find the best solutions for our partners.
Owner Recapitalization/Family Succession
A recapitalization with Quad-C is an attractive solution for an owner who wants to monetize a portion of his/her ownership position while continuing to manage day-to-day operations. Quad-C has invested in a number of family-owned companies where the "sellers" have re-invested alongside us and in many cases the "second bite" was considerably more valuable than the first due to the growth during Quad-C's investment period. An existing owner's remaining equity can typically be rolled over on a tax-deferred basis allowing for significant ownership.
We partner with managers in the acquisition of companies they run, but do not own. Management buyouts come in many forms including: (i) a corporate orphan, where we help managers acquire a division of a parent company, (ii) a going private, where we work with management to buy out public shareholders and take the company private, or (iii) a buyout of a private company, where we partner with management and buy out shares from the controlling private shareholders.
As a well funded, experienced investor with a history of closing transactions quickly and on the same terms as originally promised, Quad-C brings financial credibility to management's ability to complete a transaction. Management continues running the day-to-day operations, but now benefits directly from any value they create, as we provide our management partners with the opportunity of owning a significant portion of the company through both direct investment and an attractive option program.
Quad-C works with its management teams to evaluate and complete strategic add-on acquisitions. We have been successful in a number of consolidations, as we focus on making only strategic acquisitions and then work with management to develop smart integration plans (we do not believe in acquiring businesses simply to get bigger). Having completed more than 135 acquisitions since Quad-C was founded, we can help ensure that our management teams complete their acquisitions successfully.