Supreme Value Creation and Addition (SVCA) Strategy is our multi-disciplinary approach to execute growth and optimization efforts through a company’s management team. Our strategy is a compilation of cutting edge practices we have developed from over 100 years of collective experience in investing and operating companies.
Our approach is grounded by the philosophy that value is created by focusing on business fundamentals. These include a focus on strategic planning, recruiting and retaining key members of management, fostering growth, enhancing operating performance, identifying and executing synergistic mergers and acquisitions and realizing equity value.
Our value creation strategy serves as a resource for management as it positions itself for accelerated growth. A close working relationship with the management team of a portfolio company is a fundamental element in our operating philosophy and the key to our success. We do not involve ourselves in the day-to-day operations of a portfolio company. Rather, we seek to create equity value in a company by assisting management in identifying the key strategic, operating, and financial priorities and the resources needed to successfully execute those priorities.
Initiatives to build equity value across the enterprise include:
STRATEGIC PLANNING — In addition to the experience of Key Funding’s investment professionals, we leverage affiliations with industry experts, including our industry Affiliate Partners and network of industry contacts, in developing and implementing strategic plans for our portfolio companies.
- Develop Strategic Direction
- Improve Market Positioning
- Formulating Strategies
- Raising Additional Financing
- Strategic Direction and Planning
- Refining Strategic Planning and Thinking Through Execution
- Achieving Scale
RECRUITING AND RETAINING KEY MEMBERS OF MANAGEMENT — We generally make investments in companies with strong and proven management teams in place. However, in some cases we may recruit additional management when it is required to support the growth of a company. We typically utilize our significant industry contacts for this purpose. In addition, we take an active role in ensuring that the appropriate incentives are in place for the management team. Such incentives are carefully structured to attract, promote, and retain quality managers while protecting the fund’s investments and encouraging high returns on invested capital. In this way, we ensure that the goals of the company, management and investors are aligned.
- Recruiting Additional Talented Management
- Continuing Development of Management Teams
- Providing Access to an Extensive Network
- Effective Management Incentive Programs
OSTERING GROWTH — We believe that long-term equity value can be created through a variety of strategic initiatives, including brand building, new product development, strategic alliances, and entry into new channels of distribution. In order to achieve these goals, we partner with each management team to establish and implement clear strategic and operating plans in order to maximize long-term equity value.
- Drive Top-Line Growth
- Build Global Capabilities
- Add Complementary Products
- Open New Distribution Channels
- Arranging Financing to Support Growth
- Enhance Service Offerings
- Drive New Product and Service Development
- Introductions to Potential New Suppliers
- Developing New Markets
- Developing Enhanced Marketing Programs
ENHANCING OPERATING PERFORMANCE — We work closely with each company’s management team to ensure that the appropriate infrastructure and controls are in place to support the growth of the company. We provide assistance in improving systems, performing activity-based cost analysis, improving operating efficiencies, implementing financial controls, budgeting, and supporting the evaluation of capital expenditure decisions. Our professionals have extensive operating and financial experience from which to draw for this purpose.
- Enhancing Information And Communication Systems
- Improve Operational Processes and Efficiency
- Optimizing Organizational Development
- Enhancing Financial Reporting
- Create Unique Platforms
- Improving Capital Utilization
- Leveraging Technology
- Improve Cost Structure
- Implement Scaleable Systems
- Improve Profitability
- Improve Sales Management
- Advising on Refinancing or Recapitalization Opportunities
IDENTIFYING AND EXECUTING SYNERGISTIC MERGERS AND ACQUISITIONS — We recognize that certain consumer industry segments and operating strategies could benefit from the successful execution of industry-related mergers and acquisitions. Our background in this area lends itself to an in-depth understanding of when and how to apply such a strategy. Our financial and transaction experience, coupled with our reputation in the financing community, allow us to play an integral role in implementing these consolidations. We support M&A strategies by:
- Originating Acquisitions
- Analyzing Deals
- Structuring Transactions
- Negotiating Transactions
- Executing Acquisitions
REALIZING EQUITY VALUE — Key Funding investment professionals also have extensive experience which is instrumental in providing consulting and guidance to realize the equity value in a company. We have realized successful exits through:
- Strategic Sales