First Atlantic Capital’s investment strategy is based on the following five key elements:
- Target middle-market companies with significant growth or improvement potential. First Atlantic Capital is primarily interested in acquiring controlling positions in businesses where it believes it can help achieve growth through operating improvements, modifications in corporate strategy, and add-on acquisitions. In particular, First Atlantic Capital looks for companies that it considers having strong expansion opportunities, either internally or through acquisitions, and companies with a sound business foundation that First Atlantic Capital believes can benefit from specific changes in operating practices or business strategy. For instance, the firm has been successful in helping several family owned businesses achieve transformational growth by:
(i) establishing a strong foundation through implementation of new management practices and systems,
(ii) developing a growth strategy, and
(iii) providing resources and capital for successful execution.
- Build companies and establish market leaders. First Atlantic Capital seeks to build well-managed companies that are leaders in their respective markets through enhancements in strategy and operations. While the approach for each company is unique to its situation, First Atlantic Capital’s action plan often includes making what it views to be significant improvements in company operations and the implementation of an add-on acquisition program, where appropriate. In First Atlantic Capital’s experience, these measures together create strong operating efficiencies, generate cost savings, grow sales and EBITDA, and enhance the strategic position and importance of the company within its industry.
- Utilize consulting and operating expertise to add value. First Atlantic Capital distinguishes itself by virtue of its extensive consulting and operating experience. The principals collectively have over 30 years of consulting and 175 years of operating experience. Additionally, more than 20 years of hands-on experience allow the team to recognize opportunities to enhance and improve the operations of its portfolio companies as well as grow their business both organically and through acquisitions.
- Partner with management. First Atlantic Capital considers its partnerships and close working relationships with the management teams of each of its portfolio companies as essential to their success as investments. Prior to any acquisition, First Atlantic Capital’s principals spend a substantial amount of time with the company’s management to develop a growth plan and a specific implementation program that management is fully committed to.
- Create a proprietary deal flow. First Atlantic Capital’s emphasis on growth, its knowledge of specific industries, and its multiple successes in building companies have made it a valuable partner for a growing number of sellers and management teams who are interested in seeing their companies grow. This has led to a substantial deal flow from private or limited sale processes.
In addition the firm’s focus on a limited number of industries enables it to systematically and proactively contact, and develop relationships with, the owners of companies in such industries, which, in the firm’s experience, ultimately results in the ability to complete proprietary transactions, either as platforms or add-on acquisitions.
First Atlantic Capital views the closing of an acquisition not as an end, but as the beginning of its development plans for that company’s growth. Actively working with management, and utilizing the operating and consulting skills of its principals, First Atlantic Capital then focuses on growing and building the value of its portfolio company.