We are value-oriented investors seeking to acquire businesses that are in transition or are being divested by corporate parents. Our view toward value creation first starts by leveraging our understanding of an industry and the relationships we have in a particular vertical. Second, we seek inefficiencies in a particular business and work with management to leverage its core strengths while eliminating excess. We are skilled at guiding management both strategically and tactically to increase revenues, gross profit, and cash flow, as well as strengthening balance sheets. This is accomplished through our long-standing relationships, employees, our core knowledge of lean manufacturing, channel development, sales and marketing strategies, and rationalizing balance sheets with prudent leverage.

As we work on a particular transaction, we first seek out controllable action items toward value creation.  We work to find these value drivers and execute on them quickly and effectively, strengthening the business, increasing cash flow, reducing leverage, and providing a foundation upon which to build a business both organically and through acquisition. As operators, we’ve learned that sales are the most challenging aspect of any business, but can also have a material impact on the bottom line. We have a deep respect for this fact and understand the importance of management in driving sales.  We also understand, however, that the sales and marketing challenge requires the support of a strong infrastructure to be successful.  A healthy respect for the challenge of increasing sales drives our team to find value creating efforts that are within our control.

Finally, we believe that properly incenting management through equity and other compensation mechanisms to be a critical foundation for long-term value creation. We are highly experienced and bring creativity to designing economic packages for management that will drive long-term value. We also prefer management to invest in the transaction alongside AuSable, thereby aligning the interests of both parties.