Where it’s appropriate we’ll align our own return to the creation and growth of equity value in a client business through our Participation Model.
It may not be the only driver, but the key economic driver for owners of businesses is typically equity value, which can be exploited through some combination of yield, investment or realisation. Our involvement needs to align with and contribute strongly to growth in equity value, and where appropriate we’re happy to base our own reward on that growth. Effectively, we’ll co-invest our own capabilities with you in the business.
- Development and appraisal of robust business strategy, through strategic review, competitive positioning analysis, alignment of business resources and activities, and focused business model design
- Delivery of strategy, through execution of strategic initiatives, change to the structure of the business, management of value drivers and achievement of strategic objectives
- Direct support for shareholders, boards of directors and management teams through periods of change, such as rapid growth, governance transition and change of ownership
- Identification and execution of strategic options, including business acquisition or combination, development capital, divestment or flotation.
Aligning our own interests directly with those of the owners means that we are highly motivated to make a real and meaningful difference to the creation and effective exploitation of significant equity value. It also means that we can provide high-calibre strategic support on a very cost-effective basis, and that we are able to make a firm commitment to ongoing support and involvement. After a ‘trial period’, so that you can become comfortable with the idea of a long-term partnership with us and so that we can be confident that we really can make a meaningful difference, we become ‘part of the business’.
This intensity of commitment means that our family of Participation clients is carefully restricted at any one time, so that we can always provide hands-on support. And to prevent potential conflicts of interest, we’ll only partner with one client in a given sector.
We aim to create choices for business owners as to how, and when, to use or realise their equity value. Although we have very strong M&A capability, we’re not preoccupied with ‘doing deals’, or looking for exit opportunities when it’s not appropriate and when that’s not our client’s objective in the first place. Our participation is based on helping owners to build significant equity value, whether crystalised through a realisation or implicit, from growth in quantum and quality of earnings.