Our Approach

 
  We invest in profitable middle market businesses that have a successful track record, an attractive product offering, growth potential and quality management. Sequel seeks to compliment the management team and increase the value of the enterprise with a long-term focus.


Management Team Partnership
  We seek to partner with the management team to grow, protect and enhance the value of the earnings and cash flow of the business. We reinforce this partnership by aligning each of our economic interests and establishing common objectives for the business. Sequel understands the daily challenges of operating a business. We believe our experience, combined with our industry and financial relationships, provides a valuable resource for the management team of businesses in which we invest.


Enterprise Value Appreciation
  We focus our efforts on increasing the value of a business in which we invest while preserving a culture that allows for continued success. This could be accomplished by:
 
  • Growing the earnings of the business (organically and from incremental investment)
  • Increasing product offerings, geographic reach and its competitive position
  • Maximizing cash flow from an efficient capital structure, prudent capital spending and working capital management
  • Using the cash flow generated by the business to reduce leverage or to make incremental investments

Long-term Focus
  The Managing Partner and Advisory Board invest their capital and that of their partners in Sequel sponsored transactions. Sequel focuses its efforts on building long-term value and therefore, we do not look to enter into a transaction with a predetermined exit strategy. To support our approach, we protect against short-term shareholder needs negatively impacting other stakeholders in the business.


Limited Number of Portfolio Companies
  Sequel concentrates its efforts on a diversified but limited number of investments. We believe limiting the number of portfolio companies allows Sequel to be more involved with the business, better understand its strengths and weaknesses and the industry in which it operates, and play a more meaningful role in identifying and evaluating growth opportunities.


Financial leverage
  Sequel typically uses moderate financial leverage to support its equity investments. We seek to capitalize each business so it can achieve the growth objectives of its shareholders, is positioned to respond to competitive pressures and can withstand any unforeseen industry downturn.

 

We welcome the opportunity to learn about businesses in our focus area. Collectively, the Managing Partner and Advisory Board have completed over 115 transactions and have more than 50 years of experience operating and managing manufacturing and distribution businesses.

Sequel is dedicated to creating solutions that address your individual business needs.