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We focus on acquiring lower middle market companies with significant growth opportunities, harvest those opportunities over a 3 to 10 year timeframe, and then be in a position to sell them if we so desire.
1. At Acquisition
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Maybe little historical growth or suboptimal profitability, often due to "under-management." Frequently little or no sales force and/or growth strategy. |
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Industry sector/size limit active, credible buyers like SJ Partners, LLC. |
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Take advantage of active relationships with lenders to optimally capitalize company. |
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Fragmented industry. |
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Recurring revenue. |
2. After Acquisition
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Grow, grow, grow through aggressive sales and marketing strategy. |
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Leverage management skills, resources, and relationships of SJP's operating partners who have successfully run divisions and/or companies of up to $300 million in revenue. |
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Exploit the industry understanding and relationships of
SJP's management and its affiliate, market research company The NPD Group, Inc. |
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3. At Potential Exit
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Have company with 3+ year track record of solid revenue and cash flow growth. |
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No longer be a lower middle market company but rather a larger entity that could attract a wider variety of potential buyers for a premium valuation. |
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Sell only when exit attractive. No institutional need to sell within any given timeframe. |
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