Types of Transactions
As our single greatest requirement is a management team capable of executing on its business plan, we seek to partner with management teams and/or operationally-oriented executives who have either identified compelling acquisition targets or developed growth a plan for their existing entity that requires the capital, experience, industry contacts and other valuable resources that Burke Capital can provide. We have successfully completed a wide range of variations of the following transaction types over the past 25 years:
Corporate or Large Company Spin Offs
In some situations, despite the presence of a fully capable management team, an entity’s growth may have stagnated due to lack of focus or inadequate support from a corporate parent. In such cases, we will partner with the management team to acquire the entity and stand ready to provide additional capital to support management’s execution of a revitalized growth plan.
Leveraged Recapitalizations
By providing equity capital to enable the restructuring of a company’s capital structure, Burke Capital works with management teams and owner-operators to grow their already well-managed businesses and/or to overcome the issues associated with:
- Inconsistent investment goals of certain existing shareholders, including private equity funds or other similar entities are nearing the end of their respective investment horizons and are looking to exit; and/or
- Sudden or substantial growth; and/or
- Risk/reward hurdles
Generational Sales
We recognize that each generational sale has unique and personal aspects, including both economic and non-economic issues, and we work very hard to tailor each transaction to meet the varying needs of seller(s). Over the past 25 years, we have consistently worked together with owner/operators to create mutually agreeable structures along the entire spectrum of desired exit scenarios - from full liquidity to partial liquidity to 100% equity rollover with outside capital required for expansion.
Industry Consolidations
We seek to invest in and partner with management teams that are already operating (or have targeted) companies that can serve as the operating platform for integrating future acquisitions in industries that are well-positioned for consolidation.
Co-Investment with Independent Equity Sponsors
We have a long track record of equity co-investments in which independent equity sponsors, either smaller funds or investors who finance transactions on a deal-by-deal basis, have identified compelling acquisition candidates but require an experienced, well-capitalized partner able to provide the additional resources needed to acquire and grow the business.
Under-Performing Organizations
Profitable, well-positioned and/or well-run companies sometimes under-perform with respect to earnings potential due to a variety of issues. In such cases, we seek to partner with and invest in management teams that possess the ability to create incremental value through their vision and ability to execute plans that improve the operational efficiency of these organizations.
Special Situations
Our experience has taught us that inopportune timing of certain events (as opposed to mismanagement or negative industry fundamentals) can result in a company finding itself in a sub-standard position. While we tend to avoid turnaround situations, we will consider funding certain companies for which these “interim positions” can be both explained and resolved by management in short order and without a primary restructuring of the company.