Our Role After the Investment
We think the key to a successful and lasting partnership is understanding roles and responsibilities. We know the last thing our management partners want is an investor that meddles in the day-to-day operations - so we don't. However, our prior manager partners have told us that we have been able to add significant value by offering strategic direction, giving advice and assistance in acquisitions and financing alternatives and providing additional capital for growth. Quad-C's post-acquisition activities include:
Sounding Board
We do not believe in bureaucracy or management by committee, but we do believe that two brains are better than one and four are better than two when it comes to sharing ideas and challenging assumptions. Therefore, our objective is to be a responsive and thoughtful resource for our management teams, help set clear goals and objectives and give our managers the room to achieve these objectives as they see fit. Outside of ongoing dialogue with our management teams, we structure quarterly board meetings as an operating review where there is open dialogue and debate, not as a series of formal presentations. Moreover, we travel to the company so we limit disruption to the day-to-day operations versus forcing management to travel to our offices.
Financial Analysis and Strategy
As day-to-day operators, many management teams simply do not have the time or the resources to step back and dissect their business, or to devise the strategies to identify and penetrate new high growth and high return customers, products and distribution channels as these initiatives require time and energy . However, Quad-C does have the resources and the expertise to help in these areas, and we use our due diligence before the acquisition and our continued financial analysis after the acquisition as a springboard for creating and refining a detailed and well-supported strategic plan to drive growth and improve profits and return on capital.
Benchmarking
We strive to build leading businesses and continually benchmark our companies against the best companies both inside and outside of the industry. We also have the benefit of having owned or currently owning over 40 different companies in a variety of industries, and we share best practices among the various Quad-C portfolio companies.
Complementary Acquisitions
While many of our companies have not found acquisition opportunities that are right for them, we have helped a number of our portfolio companies with anywhere from one to 24 acquisitions. By working in concert with management to: (i) identify only strategic acquisitions, (ii) complete the due diligence, (iii) arrange cost-effective financing, and (iv) develop a disciplined integration plan, we ensure our portfolio companies avoid the common pitfalls associated with acquiring another company.
Efficient Financing
We believe that our companies should have conservative, flexible capital structures, and we have longstanding relationships with a number of lenders that allow us to provide our portfolio companies with the most efficient capital structure available
Low Profile
We like to maintain a low profile, and after we complete a transaction we prefer that few people know about it. This means no “tombstones” and no public announcements—we believe there is little upside in announcing to customers and suppliers that there has been a change in ownership.
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