| We don’t believe we are like traditional
private equity firms. Yes, we have the financial, engineering
and structuring expertise that most firms possess. However,
because we focus on certain sectors and have on staff former
senior executives, we have a base level understanding of your
business and a group of industry-specific resources for you
to draw upon. We understand the issues and opportunities that
you face, and appreciate that running your business is much
more than just “the numbers”. We also understand
that performance does not move in a straight line so we seek
to work with you collaboratively to help improve competitiveness
and find incremental growth. |
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Clear Expectations
As a new investor/owner, Arsenal and your team will thoroughly
discuss the issues and opportunities you are facing in your
business. Then, we will jointly develop and agree on a strategic
plan for the business that addresses both value creators and
risks. If there are resources we can provide to help you achieve
this plan, they are available for you to call upon. |
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Management Independence
Arsenal is seeking strong management teams to run each business.
We do not operate portfolio companies on a day-to-day basis
– that is your job. Rather, we try to actively support
you and your priorities in running the business. |
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Financial & Strategic Resources
We believe we are as good as any private equity firm in identifying
and developing solutions for strategic issues with a management
team, creating a capital structure that provides sufficient
financial resources to facilitate organic growth, and helping
to find and close add-on acquisition opportunities. |
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Functional Resources
Arsenal has functional resources on staff that can help management
teams drive company-specific initiatives. These resources also
help to achieve certain efficiencies across the portfolio by
aggregating buying power and sharing best practices in the following
areas: |
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Procurement & Supply Chain |
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Human Capital |
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Information Technology |
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Quality & Six Sigma |
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Program Management |
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Alignment of Interests
Ensuring that management and Arsenal’s incentives are
aligned is extremely important to us. Together with you, we
seek to put in place incentive compensation programs for senior
management based on specific performance targets. We also implement
equity participation programs so that if we as partner are successful,
we are sharing those rewards. In addition, we are receptive,
and typically encourage, management’s direct co-investment
alongside Arsenal in the post acquisition entity. |
