Characteristics

characteristics

 

Emphasize

  • Fundamentally strong business, end markets, market share, brand, customer loyalty due to unique products or processes (i.e. small batch, high quality)
  • Diverse customer base
  • Consistent profitability; relatively modest capex
  • Opportunity to enhance active management focus and operational discipline
  • Opportunity to improve productivity
  • Growth opportunities through accelerated backlog delivery, invigoration of sales organization and customer service, increased value-add; exploit newly freed capacity

Avoid

  • Businesses lacking a raison d’etre or the converse of any of the above
  • Long sales cycles with low unit volumes
  • Strong union, restrictive labour policies and regulations; poor labour relations
  • Excessive input cost risks (supplier dependency, volatile material costs not passed through)
  • China risk / offshore displacement of domestic providers