Generation Growth Capital
print page

Operating Model

Deal
Source

Management Teams Choose Us

  • Focus on inefficient lower middle market dynamic
    • GGC understands the nuances of the small company investment process and we have experience working with a broad range of advisors to get deals done.
    • Relatively little institutional PE
  • Utilize all aspects of GGC network
    • Partner relationships
    • Operating Partner experience
    • Business Advisor relationships
  • Viewed as a preferred buyer
    • With a focus on growth and low leverage capital structures, GGC is an attractive solution for sellers who are looking for good stewards for their businesses going forward

Rigorous
Diligence

Experts in Lower Market Diligence

  • Extensive review of management capabilities and “partnership” fit with GGC model
  • Detailed quantitative diligence and analytical analysis
  • Thorough vetting of market opportunity and perceived risks
  • Draw upon in-house industry and operating expertise
    • Diligence existing and potential operating issues & opportunities
  • Consult with outside, third party experts when necessary

Invest

Alignment of Interests

  • Creative structuring of buyout investments
    • Attractive price
    • Alignment with seller
  • Implement appropriate capital structure
    • Type and amount of third party financing sector and deal specific
    • Conservative capital structure to flatten J-Curve and provide downside protection
  • Align interests with management team through structured comp and incentive equity
  • Comprehensive legal documentation
  • Address tax implications and other issues

Add
Value

Differentiated Capabilities

  • Dual emphasis on (i) increasing current cash flows and margins, and (ii) driving ultimate exit valuation
    • Active lead investor with hands on approach
    • Augment existing management teams 
    • Enhance infrastructure (accounting systems, IT systems, HR policies, etc.)
    • Provide strategic direction
    • Focus on key operating efficiencies
    • Manage add-on acquisition process
    • Optimize capital structure and lead re-financings

Drive
Exit

Maximize Value

  • Work with management to maximize value and ensure continued success of team and company
    • Monthly & quarterly operational reviews
    • Extensive budgeting
  • Continually address and monitor exit opportunities through investment process
  • Explore variety of exit options:
    • Strategic investors
    • Mid-market private equity firms
    • Rarely through public equity markets