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Investment Approach & Philosophy
Lake Park Capital believes that superior management, a focused
business plan, and access to capital will separate above average performing
companies from under performing companies. Lake Park Capital approaches
each investment with the following structure:
Acquisition / Investment
We approach the investment acquisition phase first by determining
and evaluating the enterprise value drivers such as manufacturing
expertise, intellectual property, long-term customer contracts, and
historical operating history among other factors. The management team
is assessed in order to determine strengths and needs. Historical
and projected financial results are reviewed by employing an analytical
but common sense approach knowing that many companies may not have
audited statements or a robust financial forecasting system. During
our analysis, our main goal is to understand the critical items such
as sales backlog, engineering expertise, machinery and equipment,
vendor relationships, and other factors that drive profitability.
Furthermore, an analysis and review of Human Resources, Finance &
Accounting, Manufacturing, Information Technology, and other core
functions is conducted by employing a "been there, done that"
approach whereby we focus on the areas that are critical for success.
Shareholder Value
Post acquisition, stabilizing operations and improving profitability
is the focus. Lake Park Capital works with management teams in order
to prioritize and organize tasks and develop the most effective plan
necessary to improve key areas including sales, operations, and finance,
that may currently be adversely affecting profitability. A business
plan detailing the operating and financial goals for the current budget
period and a five year plan will be established and implemented. Lake
Park interacts and works with management teams as much or as little
as needed to ensure goals are being achieved. Lake Park Capital is
an active participant in monthly management meetings and quarterly
board meetings.
Operational and Financial Excellence
Once profits are improved and stable, Lake Park Capital seeks
to take the company to the next level whereby excess profits are reinvested
into the company to grow the business by expanding product lines,
acquiring complementary businesses, and other means of increasing
enterprise value.
It is our goal to meet or exceed our customers expectations,
create a stable and enjoyable workplace, and generate a consistent
financial return; all of which are accomplished in an entrepreneurial
yet cost conscious environment. |
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