Our Strategy
Value Creation
We believe that each of our portfolio companies must approach value creation in a structured and integrated process. Accordingly, we institute a closed-loop strategic management system in each of our portfolio companies to ensure the strategic goals are driving the financial goals, the management compensation system, the financial reporting system and the governance system, all in a closed feedback loop to ensure success builds on success.
Specific value creation initiatives that have been undertaken for past and current portfolio companies include:
Installed independent and industry-relevant Boards of Directors;
Established operational benchmarks, key performance indicators, new management compensation programs and new performance incentive programs;
Recruited senior executives to augment management;
Developed plans for capital expenditure and expansion, strategic planning and budgeting;
Initiated processes to increase productivity and improve asset utilization.
Identified, negotiated and arranged financings for follow-on acquisitions; and
Completed IPOs, mergers and other liquidity events;
Through prudent capital investment programs and strategic industry-specific expertise, we add value to our portfolio companies and in the process help create equity value for our stakeholders. A number of portfolio companies have been taken public and for some companies we view their transition into the public markets as a normal and necessary event to building and sustaining the company’s growth. Once the company has entered the public arena, our structure enables certain investors to determine their investment horizon, based on their views of the industry and the company’s prospects. Imperial Capital believes its time horizon for providing these liquidity opportunities will be between three and seven years.
The following table summarizes some of the value creation strategies utilized in our Portfolio Companies:
| Value Creation Strategies | Purpose |
| CEO Partner Program | To provide highly relevant industry experience, expertise and guidance |
| Closed-Loop Strategic Management System | To ensure there is a linked system which includes: a compelling vision and mission, clear and actionable strategic plans, management-by-objectives, performance-based compensation, and highly relevant and timely reporting |
| Industry-relevant, Independent Boards of Directors | To operate with public company governance while private, and to provide an exceptional resource for management |
| Providing ICG Investment Team to Portfolio Companies for Follow-on Acquisitions | To identify and conclude synergistic follow-on acquisitions by identifying and securing suitable targets, negotiating transactions, conducting due diligence, arranging financing, and developing the integration plan |
| Capital Structure Optimization | To provide/arrange low cost and flexible financing to ensure growth plans are fully funded, which may include identifying the best co-investment partners |
| Ensuring that the Best Management Team is in Place | To ensure the portfolio company is led by the right executives and that appropriate succession planning and executive development programs are in place |
| Maximizing Operational Efficiency | To ensure the best use of assets and capital invested in plant and equipment, and to reduce the costs of production or delivery of services |
| Planning Best Liquidity Events | To determine the best options for, and timing of, liquidity events including: initial public offerings, public company mergers or divestitures |
