The principals of Seguin have consistently applied a collaborative approach to investing. Fundamental to our approach is a problem solving mindset and an emphasis on partnering with managers upon whom we rely for leadership and execution.
Seguin works actively with its portfolio companies to execute a consistent investment strategy focused on creating substantial growth and a differentiated business model that is valued by customers and respected in the marketplace. We achieve this by focusing on operational excellence, expanded capabilities and service offerings, and selective strategic acquisitions, ultimately building a significantly larger and more profitable high-growth company.
Focused Industry Knowledge
Because of Seguin’s industry-focused approach, the Firm has developed significant domain expertise in a number of industries including publishing, security, healthcare and outsourced business services. This focus enables Seguin to quickly assess a potential investment, and identify opportunities for value creation. Prior to making any investment, Seguin develops a shared vision with management effectively creating a roadmap to enhance the company’s value proposition and competitive advantages. We frequently introduce industry operators and other experts we know to advise our managers and broaden the team’s perspective. We are always seeking to expand the number of industries we cover but are very disciplined in our approach to selecting and entering new markets.
Strategic and Economic Partnership with Management
In addition to creating a shared strategic vision with management, Seguin seeks to establish a true partnership by closely aligning economic incentives. Typically, our investments are management-led buyouts or recapitalizations in which Seguin acquires a majority interest in the business. Often, the incumbent management team rolls over equity or invests for a material ownership interest in the new company. As part of our approach, we also provide generous equity incentive programs that are performance-based and further align the interests of all parties. These programs, along with annual incentive programs, are closely tied to financial and strategic objectives. Our management team partners have significant participation in the success of their companies.
Early in the investment process, beginning before a transaction closes, Seguin works closely with managers to formalize and implement a strategic plan. The plan sets forth the framework for executing an internal growth strategy as well as a timetable for strengthening the company’s marketing, sales, service delivery, service offerings, controls, reporting, IT and other infrastructure. We also work with managers to build or strengthen their acquisition process and pipeline. Recognizing the burden acquisitions can place on the management of mid-sized companies, we supplement their capabilities with our own manpower and expertise. Our goal is to at least double revenues through a combination of internal growth and carefully-chosen strategic acquisitions during our investment period. We particularly focus on obtaining flexible financing to support our portfolio companies’ strategic and operational goals. Through our experience we have earned a reputation with numerous specialized financing sources as prudent managers providing us access to liquidity which is crucial to support the growth of service companies.
Attention to Operational Excellence
Seguin’s ultimate goal is to build companies that retain the creativeness of an entrepreneurial enterprise, coupled with the management controls and performance, strategy, and sophistication of an industry leader. We believe that the best way to do this is to be very supportive and respectful of our CEO’s and other managers. We provide our managers the resources and advice to develop their own capabilities as managers and to develop their team to meet the challenges of rapid growth and change in their companies. We draw upon our extensive experience investing in growth-oriented, middle market service companies, to help develop strategies and tools which aid managers in the monitoring of the business’ performance, health and growth. These tools and strategies are aimed at creating a culture of proactive issues identification and solutions implementation.
Additionally, Seguin has assembled a core team of Operating Partners who are available to advise us and advise and support our portfolio company managers. These individuals have over 120 years of aggregate operating experience and have served, or are serving as, CEO’s and Presidents of middle market companies in the service industry sectors in which we invest. Seguin’s Operating Partners are investors in Seguin and will, along with other operating executives we know, participate throughout the investment process, including company evaluation, due diligence and in some cases serving with us on company boards and/or on consulting assignments. Seguin’s Operating Partners bring experience, tested judgment, and operating capabilities which complement those of the Seguin professionals. Most importantly, they are available to us and our managers to provide the advice of seasoned business leaders.