Investment Criteria
Jacobson Partners is an opportunistic investor in traditional manufacturing and services businesses with enterprise values between $25 million and $150 million, in which we can invest $10 million to $25 million of equity.
We primarily invest in corporate divestitures and other middle market companies. In the past, this has included businesses in traditional manufacturing and service industries, as well as companies in the early stages of a turnaround, operating at a loss or marginally profitable, or otherwise in need of financial or operational restructuring.
In all cases we must see a clear path to long-term value creation through operational improvements. We prefer to work with existing management, but if necessary can bring in new or additional management.
Jacobson Partners makes control investments in acquired businesses, and requires management to purchase a meaningful financial stake in the acquired business.
Investment Principles
We believe in generating returns through improving the core operational performance of portfolio companies rather than relying on market timing or multiple expansion.
We believe management’s interests should be aligned with those of our investors and we require management to make an initial and meaningful equity investment. Management compensation is tied to performance targets.
We believe that active oversight of portfolio companies in the post-investment years is critical to long-term value creation and we provide strategic and operational guidance to management through our team of operating partners and investment advisors.
We believe in the long-term appreciation of equity and we seek opportune portfolio company exits. We will often recapitalize portfolio companies to enhance returns for our investors.
Creating Value
Jacobson Partners relies on the depth of its collective experience and breadth of its relationship network to generate deal flow and to creatively structure investments to substantially impact long-term investment value.
For each portfolio investment, we:
1. Operate like a public company
2. Establish a Board of Directors with strategic and operational skills to match the specific needs of each company
3. Emphasize autonomy within day-to-day business operations, but provide strategic guidance to enhance strategic planning, promote goal setting and create shareholder value
4. Focus on maximizing cost reductions and operational improvements to increase operating efficiency
5. Establish strategic multi-year plans with clear performance benchmarks for management to target
6. Continuously evaluate the financial structure to identify recapitalization and other opportunities to distribute capital and enhance returns
7. Identify strategic opportunities to grow the business internally and through acquisitions
8. Develop the CEO and senior management team by contributing value added support from our operating partners, investment advisors and wide range of business contacts
9. Encourage values of integrity, loyalty and open communication between employees, customers, vendors and owners in support of each company’s mission, vision and financial goals
10. Continuously assess progress and develop strategies to achieve investment goals in the optimum timeframe.