We want what you want. Burlywood Capital looks for successful companies that have well-developed business models, excellent management and are either profitable or have a clear route to profitability. We will help them develop an overall investment plan, a staffing strategy and ultimately an exit strategy based on this combined, collaborative and mutually agreed strategy.
What we expect and what you should expect. Having agreed an investment plan, we will expect regular updates, drawing on proper monthly financial reporting procedures. This will help us both to identify where you may need access to further capital to help achieve the investment plan. We will usually structure investments on a phased, milestone-driven basis. Investments may be through straight equity, loan notes or some form of equity hybrid investment. We will want a significant equity position in all our portfolio companies, but we don’t want to own them. Ideally, we want to be a large minority shareholder but we want management to run their companies. We’ll work with you over the course of the investment plan and ensure that Burlywood Capital plays a significant role in helping you grow.
We like companies with the following characteristics:
• Distinctive. We like companies which, by virtue of their brand, processes or scale are distinctive in their markets and capable of delivering growth in both sales and profits.
• Capable of operational improvement. We want to help make a difference and so we look for businesses that have scope to improve profits and cash generation. Improvement could come through margin improvement programmes, enhanced working capital management or effective targeting of capital expenditure.
• Management improvement. All the Burlywood partners believe that a strong management team is central to creating value. We can help teams augment management to foster the development of an optimal team to execute the business plan. This may well start with the appointment of an investing chairman.
• High levels of intellectual property ownership, capable of exploitation with a clear visibility to profit.