Qualitative Evaluation

In addition to our quantitative evaluation we assess many qualitative elements of each investment opportunity. We target investments in companies with sustainable competitive advantages that may be the result of unique designs or engineering capabilities and intellectual property, highly-efficient or unique manufacturing processes, proprietary supply chain capabilities or customer insights, an unrivaled distribution channel, a superior level of service, and/or a resilient brand and reputation with customers.

Some of the qualitative factors we evaluate include: 

Customers, Suppliers and Competition

  • Why do customers choose to transact with the target relative to other alternatives?

  • How easily can customers substitute a competitve offering?

  • Which competitors are most successful and why?

  • Can cost increases be easily passed along to customers?

Growth Potential

  • What are the size and the growth prospects for the market/industry?

  • How resilient are the factors that drive customer demand?

  • What are the marketing, sales and distribution dynamics of the industry?

  • Is there potential for the company to expand into related markets?

Operations

  • What financial controls are currently in place?

  • What is performance measured and what are the key metrics?

  • What is the sustainability and growth potential of profit margins?

  • How sustainable is the current operational layout to support continued growth ?

Management

  • Is this CEO the right individual to grow the company going forward?

  • How deep is the management team?

  • What management resources is the company lacking?

  • How effectively can we work with the existing or proposed management team?