Executive Partnership Program. Presentation 2014

Transcription

1 Executive Partnership Program Presentation

2 OPPORTUNITY BRIEF Overview: Executive Partnership Program: Deal Sourcing: Average Search: Geographic Markets: Investment Type: Target Investment: Industry Preference: For more information: Salt Creek Capital is a San Francisco Bay Area based private equity firm founded in Flagship strategy; we seek to support talented executives in acquisitions of smaller companies where they will serve as CEO post -acquisition. We do not rely on our partners for deal flow 100% of deals closed have been originated by SCC months (avg. time from start of search to closing) Anywhere across the U.S. Buyout / Control Equity will not consider early stage or distressed situations. Leading companies with $750K- $3MM of EBITDA. Flexible / Agnostic Manufacturing, Business & Consumer Services, Distribution. Carefully consider the requirements herein and follow this link to contact us. 2

3 UNIQUE APPROACH Focus on Smaller Companies We focus on deals that are typically too large for individuals and too small for larger PE buyers. We seek to make investments in leading small businesses with $750K-$3MM of EBITDA. Partner with Talented Operators We partner with operating professionals to identify attractive acquisition opportunities that require new management and where our partners can serve as the CEO of the company post-closing. Source Attractive Investments We provide our partners with proprietary deal flow as well as expert guidance throughout the search and execution process. Our approach generally leads to identifying several attractive opportunities in an expedited time frame. Flexible Deal Structures We take a flexible approach to structuring transactions. We do not have any predetermined hold periods and our partners obtain attractive compensation with significant equity positions. 3

4 TYPICAL PARTNERSHIP SITUATIONS Management Buyout: Executive Partnership Program: Current Management team or Executive with a specific target for which they are seeking financial support. If you d like us to consider a current transaction that meets our criteria, we encourage you to contact us to discuss the opportunity with a member of our team. Broad, opportunistic approach where executive seeks to partner with an experienced investment team to uncover attractive opportunities and improve their chance of making a successful acquisition. See criteria. 4

5 PROGRAM OVERVIEW We partner with a small group of exceptional operating executives to identify and acquire companies generally with $750K-$3MM of EBITDA We provide deal flow and expert guidance in evaluating and financing buyout transactions Our executive partners become the CEO of the acquired company and SCC provides on-going board level support We provide a collaborative environment and the resources to acquire an attractive company in an expedited time frame 5

6 BENEFITS TO EXECUTIVES Immediate high quality deal flow SCC does not require execs to generate deal flow or do any marketing / cold calling Complete capital solution (debt and equity) Collaboration on evaluating each opportunity and related industry Guidance through deal structuring, negotiating and closing processes Obtain CEO position at attractive compensation and with significant equity position usually, a clear path to 7-figure upside within 5 years Minimized risk through asset protection and estate planning strategies Proven process for closing transaction with minimal up front investment and significantly reduced transaction risk from broken deal(s) Committed team supporting the long term growth of your business 6

7 TROUBLE GOING ALONE Inability to create sufficient deal flow Lack of quality opportunities most of the best deals are not broadly marketed Lack of credibility with sellers Limited resources to properly diligence targets Strategic acquirers represent 75% of the marketplace 7

8 PARTNERSHIP CRITERIA Successful managers / operating executives looking to run and grow acquired company over next 5+ years Commitment to search and acquisition process ( avg months ) Ability to relocate for the right opportunity; usually must complete multistate search Prior President, GM or equivalent experience must have demonstrated ability or potential to manage full P&L and grow company Ability to make meaningful investment in the acquired company on the same terms and conditions as SCC typically $100,000+ Execs are not expected to have a specific business opportunity or target industry to pursue transactions program is typically best-suited for generalist approach / managers 8

9 EXPECTED PROGRAM BENCHMARKS Total timeframe from start to closing: 6 14 months Expected time commitment from executive: hours per week Number of qualified opportunities reviewed: 100+ Typical number of offers made:

10 INVESTMENT PHILOSOPHY Focus on soft spots in the market where we are most competitive Sourcing a high number of opportunities is key to finding attractive investments Opportunistic Approach to finding great companies we are flexible to industry segments and will consider opportunities in the manufacturing, business and consumer services, and distribution sectors Work with the most talented Executives and provide them with a high - caliber and collaborative culture from which to succeed No pre-determined hold periods; we back executives for the long -term Management as owners and investors Only acquire companies where our talents can add value 10

11 TARGET ACQUISITION CHARACTERISTICS Motivated seller - retiring owner, sale of a family owned business, or corporate divestiture are typical scenarios Prefer recurring and predictable revenues; avoid project -based companies (e.g., construction, consulting, etc.) Niche players in growth sectors and fragmented markets Strong margins, indicating high value proposition/less competitive market and growing revenues Strong secondary managers and/or committed key employees Good fit for executive s skill set, experience and relationships Definable growth drivers and positive macro trends No auction or less competitive process

12 DEAL SOURCING Our philosophy: You can t invest in the best companies if you never see the best deals. Our goal: to capture the market of small business acquisition opportunities and pursue the best deals with our executive partners Our capabilities: Best-in-class origination platform which includes our Partnership Portal, a proprietary cloud-based CRM and deal database, and back-office administrative assets which enable our team to diligence a large number of opportunities Our commitment: to source and close an attractive acquisition opportunity with each of our Executive Partners in an expedited time frame

13 LEVERAGE OUR EXPERIENCE Proven experience and processes resulting from 30 years of experience closing over 50 lower middle-market transactions Get complete support with due diligence, negotiation, and deal structuring Proprietary deal sourcing platform Focus on opportunities that are most attractive to you Ongoing board of directors level support to maximize long term value For more information, see team bios and representative case studies 13

14 FOR MORE INFORMATION: Please follow the link here and someone from our team with be in contact with you shortly Do not send a separate or resume we will review your profile on Linkedin and contact you to discuss this opportunity further 14