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INVESTMENT PHILOSOPHY
Our
investment philosophy is to serve as value-added partners to management with an
objective of sustained long-term growth and cash generation. We seek
opportunities with companies that have established revenue streams and achieved
profitability, are well-positioned with differentiated products and/or
services, and have solid management teams in place who possess a deep
understanding of the markets and consumers they serve. Preferably, investment
candidates will have reached sales of $5 million to $25 million or more, with
operating earnings in excess of $1 million.
Value-added
Partners. Kiawah
Capital lends assistance where and when needed. Examples may include strategic planning for targeted growth
initiatives, improved marketing tactics, geographic expansions,
as well as financial planning for broader access to capital (both debt and
equity), acquisition strategy management and financial analyses.
Long-term
Focus. Ideally investments are long-term in
nature, focusing on industries with sustained growth and cash generation
potential. The fundamental drivers
are maximizing growth through strategic planning and exploiting market expansion
and/or sales penetration opportunities.
Divestitures will be driven by changes in industry fundamentals or
shifts in investment philosophy.
Conservative Capital Structure. Establish equity, debt and revolver availability based on seasonal and cyclical trends with enough flexibility to attain expected growth as well as withstand unexpected short-term slow downs.
Control
or Minority Positions. We offer a variety of
investment structures depending on the preferences of the selling owners. Prefer significant management
participation or affiliation with key industry operators.
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