Investment & Acquisition
The Core40 team devotes careful attention to industry selection and sub-sector investment thesis development, due diligence, transaction execution, and investment monitoring. Our strategies include implementing any or all the following core tenets: best-practice programs to reduce costs and improve efficiency, investment in revenue-building opportunities, working capital reduction and non-core asset divestitures, and aggressive add-on acquisition programs.
Once a potential investment has been identified, a transaction team led by an Investment Partner and joined by an Operating Partner is assigned. This team’s primary responsibility is to work with management to complete a detailed analysis of the company’s business and markets, including the ability to increase revenue and profitability. Our multidisciplinary team of professionals will also perform business, legal, and accounting due diligence. The evaluation culminates with the collaborated preparation of a detailed business plan for each portfolio company.
Our professionals respect the careful division of responsibilities between investors and operating management who will be tasked with achieving the performance targets set forth in the business plan. We believe in entrepreneurial energy, passion, and drive. It’s our goal to complement these skills with advice, skill enhancement, and operational efficiency.
MANAGEMENT & ADVISORY
A principle of our success in accelerating growth and profit is the consistency with which we execute optimization strategies across our desired industry sectors, thereby leveraging our brand power and recognition to attract the necessary resources to implement a robust investment strategy defined in three methods.
A vital component of value creation in the early stages of a Core40 investment is the execution of an operational improvement plan. Improvement action items are determined by the portfolio company’s needs but generally follow a similar formula. We focus on the reduction of costs through the implementation of best practices to streamline and improve efficiency. Gains are typically achieved via industry consolidation, scale expansion, process centralization, and implementing new technology which enables the portfolio company to achieve world-class standards.
An exceptional management team is necessary for implementing business transformation. Our professionals are a valuable resource to the management team. Years of experience running-related businesses allow them to provide mentorship, operational execution, and strategic perspective. Assembling the right management team may involve adding discrete functional expertise to support the growing needs and the expectations for business expansion. For some of our portfolio companies in corporate carve-out situations, broad-based senior-level executive additions may also be appropriate.
Creating a sustainable growth profile through accelerated revenue-building opportunities is an important aspect of the plan. A growth plan is implemented by focusing on savings generated through efficiency gains that will be reinvested into the business allowing for the development of new product innovation, expanding into new markets, or capacity expansion. Add-on acquisitions will be pursued to grant opportunities to complement existing products and distribution.
OPERATIONS & SERVICES
Optimizing the performance of your company can be a challenge. Core40’s team of subject-matter experts offer advisory services to guide your company through every stage of business development. Our accomplished advisors exemplify a deep, multifaceted spectrum of entrepreneurial experiences and industries, which allows them to offer objective, practical, and results-driven advice through one-on-one coaching for smaller businesses. We provide solutions dedicated to supplying the knowledge, know-how, and tools necessary to confidently manage every aspect of your business.