The due diligence process encompasses a variety of steps to evaluate the current performance and future prospects of a potential portfolio company. Gaining full understanding of the company’s fundamental foundation and culture is of highest priority. Other key steps include industry and competitor analysis, onsite visits, meetings with key managers, field observations and coordination with outside service providers to name a few. The net result is an evaluation of the future earnings potential of the company under varying performance scenarios.
Prior to investing, Jordan-Blanchard works with management to create a detailed operations plan that identifies and details market opportunities, cost reduction potential and specific actions that could be taken to build value. The plan creates clarity of focus, organizes lines of effort and sets expectations for results.
Once the above two steps are approved, Jordan-Blanchard moves expeditiously to complete the transaction. Executed transactions are sought to be fair and equitable to all parties. Consistent with the investment strategy, debt is prudently utilized in the company’s capital structure.
Business Improvement & Monitoring
One of Jordan-Blanchard’s competitive advantages is the recognition, development and application of leadership within a company. Often, companies lack the depth of management leadership needed to deliver the performance we expect of our investment. Jordan-Blanchard’s Management Team will effectively augment a company’s management team and partner with key managers on initiatives and projects central to driving value.
Jordan-Blanchard believes that operational improvement should be driven by employees at all levels of the company. Our team quantifies improvement potential and sets targets, but the majority of these efforts are spent training employees at every level of the organization to identify opportunities and empowering them to implement changes.
Involvement is greatest during the first months of ownership as Jordan-Blanchard’s Management Team assists to identify strategic priorities, build systems and processes, develop metrics and establish the company’s team. Once these objectives are established and in place, involvement moves to oversight and assistance on key initiatives where appropriate.
Exit Strategy & Timing
The decision to exit an investment is determined based on the unique business needs and prospects of each company.
In line with Jordan-Blanchard’s traditional timing, the expectation is to exit an investment and distribute the proceeds within five to seven years of the investment date. However, we will evaluate each portfolio company and determine timing for an exit based on the opportunities that exist for each investment.