Management Partners

Brazos partners with experienced operating executives, both incumbent CEOs of acquired companies and executives with whom Brazos will collaborate independent of an existing portfolio company, to target industry sectors for investment and to build leading companies in those industries through organic growth and acquisitions. This has been accomplished successfully in industries such as building products, healthcare, industrial distribution, branded consumer products, and food. Brazos professionals spend a significant amount of time seeking to establish alliances with proven executives who have successful track records in targeted industries.

Brazos works with its management partners to create significant value by executing upon four phases of the investment process – from initial acquisition, through the enhancement and acceleration phases, to profiting upon exit.

Acquire with Management

The reputation, expertise and network of our management partners are important resources in identifying, sourcing, and completing platform and add-on acquisitions. Management partners support the origination of deals via their deep network and are also consulted regarding relevant opportunities that come through other Brazos deal sourcing channels. Our management partners are involved extensively throughout the due diligence and post-closing periods.

In many instances, Brazos will support the efforts of its management partners to pioneer a buy-and-build initiative in a consolidating industry where the ownership and incentive packages are pre-determined. Brazos and the management partner will work together closely to identify an attractive platform company which, when acquired, will serve as the foundation upon which to build a more sizable leading business through a series of strategic acquisitions. Brazos will many times partner with an existing CEO of a company to acquire it as a platform investment with the joint vision to transform that company into a much larger enterprise.

No matter what the approach, Brazos is dedicated to providing management partners with appropriate upfront strategic and financial flexibility to capitalize upon their vision.

Enhance with Management

Brazos and its management partners share the common goal of creating value at the portfolio company. Well in advance of the transaction closing, Brazos works with its management partners to develop a post-closing 100-Day Plan and Long-Term Strategic Plan and establish enhanced financial reporting and control systems with greater transparency and business process measurement tools.

Brazos relies upon its management partners to determine where and how to invest in the infrastructure of the portfolio company in order to create a platform from which to execute the Long-Term Strategic Plan. These initiatives often include strengthening management teams where it is mutually deemed necessary; re-allocating resources to the most productive products, assets, or lines of business; expanding service or production capacity; enhancing supply chain efficiency; outsourcing non-core operations; improving working capital management; and upgrading information technology systems.

Accelerate with Management

During the acceleration stage, it is critical to draw upon the experience of management partners who have successfully executed similar value creation strategies and understand the impact that strategic decisions made today can have in the future.

The acceleration will often take the form of leveraging prior investments in people, systems, and infrastructure; expanding geographically, extending product lines and channels of distribution, and penetrating new addressable markets. Add-on acquisitions may also be a central growth driver whether they are transformational in nature or smaller bolt-on acquisitions.

The list of initiatives is long – but one thing is certain, the effective collaboration between Brazos and its management partners leads to acceleration of growth and realization of critical mass.

Profit with Management

Brazos and its management partners collaborate in making liquidity decisions. Management partners play a critical role in determining the appropriate timing for exit and the sensitive process of attracting buyers. Accordingly, they are called upon to help clearly communicate the positive trends affecting the company, its industry, and end-markets in general, to prospective buyers. By fostering competition among a broad, robust group of financial, strategic, or public market buyers, Brazos and its management partners are able to realize substantial value.

Brazos is a firm believer in creating the proper alignment of incentives with management through meaningful equity ownership and stock option plans. These equity ownership packages ensure that management, Brazos, and its investors all profit together upon the successful sale of the company.

The successful collaboration between Brazos and its management partners to execute across all four phases fundamentally alters the profitability and growth trajectory of companies into world-class assets that other investors and strategic acquirers are willing to pay a premium for upon exit.