How we create value
We are active minority owners who support and improve the priorities and operations of companies in partnership with existing owners and management. Value creation consist of both the underlying growth of the asset and the value added through enhanced growth and margins by applied expertise.
We seek to agree a pre-determined operational value creation plan with existing owners and management who will retain a meaningful stake in the business prior to executing the transaction. The value creation plan focuses on three pillars:
- Operational efficiency: shorter-term improvements to existing business model which may include governance structure, systems and capabilities, pricing, sales, cost, and balance sheet optimisation
- Growth: short-to medium term initiatives to drive top-line growth including geographical, channel and product expansion, and M&A activities
- Business model re-invention: longer-term initiatives to establish enhanced business models to leverage underlying value chain shifts and new customer needs
We do not burden our companies with excessive debt, but focus on operational and strategic levers to reduce risk and ensure portfolio companies remain nimble.
We have our competitive advantage in executing our investments based on specialized sector insights, deep stakeholder alignment and change management experience, and extensive networks. We believe our advantages in partnership investments is repeatable and sustainable over time.
Explore would not invest in a company if we do not share with management and existing owners a common vision for the firm’s path towards value-based growth. We always seek Board representation and actively engage in the development of the company as an advisor and partner.