Our investment process
For all our investments, we follow a nine-step tried-and-tested process.
1. Market research
Using our investment themes as a starting point, we perform in-depth, rigorous market research to identify attractive markets and companies.
2. Deal sourcing
We focus primarily on pro-active sourcing to reach management teams. In addition, we use our extensive network of advisors and industry experts.
3. Investment analysis
We have a standardized investment process and a flat organizational structure, leading to efficient and objective decision making.
4. Management meetings
We meet with the owner/general manager and their team to learn about the company, its path to continued growth, the rationale for partnering with Create Capital, and the company culture.
5. Indicative offer
If we decide to go ahead after our initial analysis, we prepare an indicative offer – including valuation and the key conditions to enter into definitive agreements.
6. Due diligence
In addition to regular due diligence for transactions of a similar size and nature, we conduct a review of the organization’s team, to assess its current potential as well as opportunities to strengthen it. We also develop a “Full Potential Plan” with management, to serve as a long-term business plan for the company.
7. Definitive agreements
In parallel with the due diligence process, we negotiate the binding definitive agreements, including the sale and purchase agreement. We also negotiate optimal debt financing with third parties to ensure that the company’s future financing needs are met.
8. Value creation
We help our portfolio companies create value by implementing their Full Potential Plan. Our assistance may include hiring additional management team members and key employees; delivering sales and international expansion plans; performing add-on acquisitions; implementing strategic capital expenditures; and strengthening support functions. We meet with our management teams on a regular basis to foster our active partnership.
Our aim is to exit our investments in 4-6 years, following completion of the Full Potential Plan. Our typical exit strategy is a sale to another financial sponsor or to a strategic buyer.