Investment Process
Due Diligence
Our due diligence process encompasses all steps to evaluate the current performance and future prospects of a potential portfolio company. Key steps include industry and competitor analysis, site visits and meetings with key managers, field observations and coordination with outside service providers. The net result is an evaluation of the future earnings potential of the business under varying performance scenarios.
Plan Development
Prior to investing, Jordan Capital works with management to complete a detailed operating plan for the business. The plan details market opportunities, cost improvement potential and identifies specific actions to be taken to build value. The plan creates clarity of focus and sets expectations for results.
Transaction Execution
After completing diligence and the business plan, Jordan Capital moves expeditiously to close the transaction. We seek to execute transactions that are fair and equitable to all parties. Consistent with our investing strategy, we use debt prudently in the capital structure of our companies.
Business Improvement and Monitoring
Our principals have significant experience in operations, sales and marketing and finance. Often, our portfolio companies do not have the depth of management needed in every functional area. Our principals can effectively augment the management teams of our portfolio companies. Given our operating experience, we can work with our key managers on initiatives and projects central to driving value. We believe this approach to be different and valuable to our businesses and investors.
Our involvement is greatest in the first months of ownership. We can assist in setting strategic priorities, building systems and process, developing metrics and building the team. Once priorities are established and systems and metrics are in place, our involvement moves to oversight and assistance on key initiatives where appropriate.
Exit Strategy and Timing
The unique business needs and prospects of each portfolio company will determine the timing of the decision to exit an investment. Under most circumstances, we would expect to exit an investment and distribute the proceeds within five to seven years of the investment date. However, given our long-term approach to creating value, we can, under certain circumstances, make arrangements for investors to retain ownership for longer periods of time.