Our strategy is simple at its core. Partner with great management teams to build operating companies into industry leaders over a period of time measured in decades, not years, and so by combining operational excellence with an acquisition-led growth program.
Success in a long-term build-up strategy is enhanced when the market sector in which the company operates possess certain core attributes. In general, these core attributes, that are typically resident in a fragmented market, include: a long-term positive demand growth outlook; a robust profit margin structure; and an attractive return on capital sustainable over time. Successive acquisitions of companies possessing these attributes underpin our strategy.
We believe financial leverage should be used judiciously and held to prudent levels as a means of enhancing return on equity while maintaining financial and operational flexibility in all environments. This approach provides management the ability to focus on growing the business rather than managing the balance sheet, while providing the necessary capital to invest through all market cycles.