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Our investment strategy is very simple and straightforward to invest in privately held, operating companies in the Southeast with established revenues and cash flows, centered in the industries of manufacturing, value added distribution, consumer products, business services, and healthcare. In so doing, we hope to build significant shareholder wealth for our partners, while minimizing many of the risks inherent in private equity investing. The key steps to execute our strategy are to:
Invest in basic industry firms with established revenues and cash flows.
By focusing on basic industries that have stood the test of time, we seek to avoid technological obsolescence. We will be users of technology, but not developers of it. By focusing on firms with a successful history of operations, we seek to avoid the many perils of start-ups where the business plan and/or the management team is unproven.
Invest in operating firms in the lower end of the middle-market in the Southeast.
Operating companies are what we and our investors know. The lower middle-market is attractive to us as we believe it is underserved, therefore presenting more of a value opportunity than markets that are highly sought, by both larger strategic and financial investors. The Southeast is our geographic focus as it is a well-diversified region of the country that we know extensively and can readily access. We spend a great deal of time developing strategy, building management teams, and monitoring performance, which we believe can best be accomplished in person. As a result, we believe this market provides the best opportunity for superior, risk-adjusted returns.
Utilize a flexible approach in structuring our investments.
We maintain a flexible approach in structuring transactions, as each investment opportunity requires a unique strategy for the capital needs of the business and it's ownership. Therefore, we will invest in common stock or preferred stock, on either a majority or minority ownership basis.
Invest in partnership with management.
We are actively involved in each investment we make and provide strategic operating and financial guidance by actively participating in board-level meetings and regularly reviewing operating and financial performance. However, we do not seek to operate our portfolio companies on a day-to-day basis. We believe that can best be accomplished by a seasoned, talented, and committed management team that is financially incented to build shareholder wealth in the business. |
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