frequently asked questions
What advantages does ORG have over other private equity firms? Our mission is to work directly with business owners to provide a customized, transparent private equity investment transaction that meets your personal and financial goals. We do not participate in broadly marketed transactions because we’ve found that having an intermediary between ORG and your business inhibits the type of direct collaboration that leads to strong outcomes. Read More »
There are a few elements that make our approach unique:
Flexibility: We appreciate that every business is unique and we adjust our approach to your company’s situation – not the other way around. We have the ability to be flexible and creative in structuring transactions in order to provide a superior outcome that works for you and your business.
Industry Group: We have a group within ORG exclusively dedicated to finding opportunities in our industries of interest. Each Partner Company has a dedicated Industry Group lead to identify attractive acquisition opportunities, strategic relationships, and new customers.
Focus on Relationships: On average, we’ve known companies for 3 years before engaging in a transaction together. We are willing to spend the time to get to know a company (and you can get to know us!) to understand the unique needs and ensure a fruitful partnership.
How can ORG help to improve the growth of my company? In addition to providing capital for acquisitions and organic growth, we also have relationships throughout the value chain in our industries of focus and are able to connect you with potential customers, strategic relationships and functional experts.
Many of our Partner Companies also highlight the increased focus and structure a private equity partner can bring to the company through improved reporting, governance and fiscal discipline.
How involved is ORG in day-to-day operations of the business? ORG has representation on the company board and will request monthly financial statements, but as far as daily operations we leave that to the strong, capable management teams in which we invest. We always encourage prospective partners to speak with the leadership of our Partner Companies to obtain their perspective on what it is like to work with ORG. Where appropriate, our Corporate Resource Group can provide guidance and management of long-term, transformative projects that our Partner Companies undertake but might be under-resourced for.
How long does ORG stay invested in a business? ORG takes a long term view with its Partner Companies as it takes time to achieve disciplined growth. During and after the transaction we collaborate with management to come up with a strategic plan to maximize the value of the business. When an opportunity arises, the decision to exit the investment is made in close collaboration with our Partner Company management.
Why should I choose ORG over a firm that specializes in my industry? Our Partner Companies enjoy working with us because we bring an alternative perspective by working with multiple companies across a wide variety of industries, but we also allow our management teams to run the business largely as they see fit. This is not to say we don’t have strong knowledge of the industries in which we invest. Our dedicated Industry Group in actively involved in the industries we invest in, serving our Partner Companies with introductions to customers, strategic relationships, and acquisition opportunities.
What is ORG looking for in a company they’d like to invest in? Our ideal company is a high-quality growing business and a leader in their industry, with a strong management team in place. We are broadly invested but have a preference toward certain industries within a few key sectors (engineering-intensive manufacturing, service-supported distribution and niche services companies). We generally look at companies with EBITDA greater than $5.0 million and have invested in companies with as much as $60.0 million in EBITDA.
Should I consider anything other than price when evaluating a potential capital partner? That depends on your individual goals but yes – we think so! Price is important, but there are other factors to consider when engaging a capital partner. Do they have integrity? Are they patient? Will they make a good partner? How will they treat the company and employees after the investment? These are just some of the questions you may want to ask when considering working with a capital partner. And not to complicate things, but price isn’t a straightforward concept. Overall value received should take into account both current and future considerations. We would encourage you to speak with any of our Partner Companies directly to get their impressions of their partnership with ORG. Or get in touch with us so we can discuss our fit, and how we’d value your business.
Does ORG typically take a minority or majority ownership position in companies? Except under very special circumstances, ORG makes majority investments in the businesses in which we invest.
Can the management team invest in the company alongside ORG or, if they already own an equity interest, retain or increase their ownership? Yes. We only invest in strong, capable management teams as they are crucial to the success of any business. With that, we view management teams as partners and strongly believe they should be provided financial incentives to increase the value of the company. ORG has the ability to structure flexible transactions and can work with the current management team to come up with a solution that is beneficial for all parties involved.
Can I retain any ownership in the company after ORG invests? Absolutely. We especially encourage those owners that choose to remain active in the company to retain some ownership so that we are all working on the same side of the table toward growing the business. If you are ready to take some or all of your chips off the table, ORG can provide a straightforward way to realize the results of all that you invested in your business.
How much debt will ORG put on my company? We are very conservative in the amount of debt we place on a company, as we believe the cash flows of the business should be used to fuel growth and not pay down debt.