At Battery Point, we often provide capital for acquisitions and we have extensive career experience in increasing the valuation of a business via M&A driven growth strategies. We are able to help our partners drive value via acquisition through the following advantages and experience:
- M&A execution is our core skill. Because acquisitions are our expertise, we often focus on acquisitions to add on to our existing portfolio companies whenever possible. We have extensive in eliminating overlapping costs post acquisition, allowing our portfolio companies to concentrate on growth opportunities.
- We understand the need for thorough due diligence & research. We understand that much of our return on investment in an acquisition-based strategy is based on an ability to acquire businesses in the best way possible from the start and to minimize their risk. We are aggressive in sharing our M&A experience with our portfolio companies, providing them substantial help in identifying acquisition targets that fit their criteria. Prior, we help perform substantial industry and competitor research as well as generate valuation estimates. We can also help our companies identify underperforming businesses that can be improved through better management and proper investment in critical areas.
- We are experienced in the upgrade. As soon as an acquisition is completed, we help our partners establish strong financial controls, internal reporting, eliminate unprofitable units, streamline operations, and help management to identify operational inefficiencies. We also know the importance of having excellent software and IT operations and encourage our partners to move quickly to upgrade to the best available solutions that provide enhanced business analytics to support better decision making.
- We can help with use of appropriate leverage. We help our partners access debt capital to fund an acquisition strategy, as leverage sets up a much higher internal rate of return (IRR) in the long run while also allowing our companies to consider large, transformative acquisitions. As important, we understand how to leverage the balance sheet of the target acquisition to close larger acquisitions.