COMPANY PROFILE
We are a private investment firm that invests in small–to lower middle market and startup companies located in the South and Southeast U.S. and UK. We focus on industrial products, technology, trading and services businesses.
We collaborate with experienced entrepreneurs in search of capital and the operational expertise they need to continue growing and expanding their business. We commit fearlessly to building successful companies over time to maximize value for both our portfolio businesses and our investors.
We have the confidence to follow through on our investments based on years of hands-on business experience and know-how. Governed by several principles that inform our actions and help us lend our expertise in the ideal manner, we work side-by-side with our entrepreneurial partners to help to structure deals and grow a company to its full market potential.
15
Years
Experience
Current
28
Investments
6
Specialist
Industries
4
Experienced
Partners
OUR TEAM
Our resources combined experience serving senior roles within investment banking, law, technology, trading, and private equity provides a strong platform to serve our clients. Our team provides us with a deep network of relationships, as well as the financial and technical expertise that is required for the high level of services we provide our partners and clients.
INVESTMENT STRATEGY
We believe that past success is a great indicator of future performance. That’s why we invest in companies whose leaders have a history of proven success in building a business.
We seek privately held companies in the large but underserved small-to-lower middle market business sector with EBITDA of less than $15 million.
Over the decades, our experience has taught us how to identify the paths businesses need to take to increase their opportunities and reach their full potential. We partner with strong entrepreneurs whose primary limitations to continued growth are long-term capital and the expertise to take their company to the next level.
BCSR works with these entrepreneurs at the appropriate stage of the business cycle, ready to lend our know-how and connections to match resources, potential, capital and leadership. Our goal is not to take over a company. It is to work with our entrepreneurial partners to learn how to best move the company forward -- and then follow through.
INVESTING WITH US
BCSR takes a very deliberate approach to investing. We look to partner with high net worth individuals, family offices and institutions that are seeking a stable and carefully managed alternative investment opportunity from a firm with a proven track record of success.
We make majority control investments and minority investments with high growth companies in the small-to-lower middle market entrepreneurial companies in the industrial products and services sectors that are poised for growth. We partner with experienced management teams whose only limitations for continued growth are long-term capital and the knowledge and expertise of how to take their company to the “next-level.”
BCSR defines small-to-lower middle market businesses as operating companies with EBITDA less than $15 million. We believe the opportunities in this market generally have lower entry price multiples, less competition from other financial buyers, significant opportunities for growth and expansion and attractive exit options to strategic and/or larger financial buyers.
BCSR focuses its attention on the South and Southeast regions of the U.S. This geographical area has large numbers of companies servicing various parts of the petrochemical, energy, waste and other industrial sectors.
FINDING THE RIGHT INVESTMENT
Our experience tells us that past success is a great indicator of future performance. The attributes we look for in targeted companies include:
Market Niche and Market Size: Established market niche, unique product and/or service generally free from commoditization with attractive growth potential.
Dynamic, Entrepreneurial Management: Leaders with the management depth necessary to successfully implement a growth strategy.
Defensible Market Position: Defensible barriers to entry from new domestic or international competition
Scalability: Management information systems, product sales, marketing and distribution conducive to scale without significant capital investment.
Strong Recurring Free Cash Flow: Leverageable and predictable free cash flow.
Profitable: Proven history of profitability and growth.
Reasonable Valuation: A valuation commensurate with the company’s growth potential and investment risk.
Seller Reinvestment: Willingness of the selling shareholders who are active in management to reinvest in the company’s future.
Before we commit, our rigorous due diligence provides us with a thorough understanding of a company’s strengths and opportunities. This critical process allows BCSR to invest, using tangible metrics to judge both current and long-term success.
PROVEN INVESTMENT PROCESS
BCSR uses a disciplined and proven investment process. We developed a key investment criteria matrix to evaluate transactions. Essential elements of this process include:
Identifying attractive investment opportunities at reasonable purchase prices;
Conducting thorough and complete due diligence;
Developing a creative transaction structure that incentivizes portfolio company management and maximizes the company’s opportunities for success;
Focusing on investments that provide BCSR with enterprise control (through ownership or structure);
Developing and implementing a post-investment value enhancement plan for the company; and
Identifying appropriate liquidity options, which may include dividends, recapitalization, capital markets or an outright sale of the company.
We get involved in managing each portfolio company, which includes the development of a post-investment value enhancement plan. This plan addresses strategic goals and objectives, internal and external growth opportunities, cost control and/or margin improvement, management development and recruitment, budgeting, finance and management information systems. We will partner with the portfolio company management to ensure the successful implementation of the plan lending our know-how and connections where necessary to take the company to the next level. We believe the development and use of these criteria instills discipline in the investment process and allows BCSR the tangible metrics to evaluate portfolio companies strengths, weaknesses and potential for investment return.
BCSR believes in true partnership. Once we commit to invest in a company, we encourage the entrepreneur to make a sizable equity contribution to ensure a shared vision and mutual passion for moving the company toward meeting its growth goals and maximizing the long-term value for investors, rather than near-term IRR milestones. BCSR’s extensive network of long-term relationships generates deal flow outside the traditional auction process and comprises general business contacts and relationships with executives, investors, industry experts, bankers, local intermediaries, accounting firms and law firms.
VALUE ENHANCEMENT THROUGH FINANCIAL AND OPERATIONAL EXPERTISE
BCSR helps entrepreneurs transform companies. We don’t just invest capital. We take a long-term view and invest time, energy and expertise – time for a company to grow, realizing its full market potential and building successful companies for business owners and investors alike.
BCSR guides companies to greater growth by partnering with managers as mentors, as coaches - as someone who’s been there. We help companies find operational efficiencies, market opportunities, cost controls and margin improvements to reveal the hidden gems that result in increased value over time. We also enhance the company’s management team, surrounding them with the right people and resources.
Furthermore, we partner with strong entrepreneurs looking to grow their company to the next level. Some may be family-owned companies looking to slowly transition their business to another like-minded owner. All are focused on continuing the success they've built.
We stand ready to lend our know-how and connections to help bring together relationships, capital and leadership. We’ve built our team from a bedrock of real-world experience and look to do the same with our portfolio companies all the way from day one to day done.
GROWING YOUR COMPANY
As a business owner and entrepreneur
Do you have the capital, team and systems in place to achieve your company’s strategic goals?
Are you seeking a liquidity even to diversify your wealth?
Are you spending too much time in the office and not enough time when you bring the most value to the business?
Have you developed a succession plan?
Do you have partners who advise and support you in increasing the value of your company?