Overview
We seek acquisitions of underperforming, or disruptive technology private companies and public subsidiaries where our participation, in partnership with management teams, can transform companies and the industry segments in which they compete, to create large, dominant, highly profitable businesses with long-term competitive differentiation.
Industrial Renaissance’s business model is based on deliberate business strategy to create market opportunity, competitive advantage, and economic value, not financial engineering.
We develop strategic plans to design enterprises that will better serve the customer and enhance the ways they compete in an industry segment.
When appropriate, we use buy-build acquisition techniques to grow via the acquisition of complementary businesses, where we proactively identify, acquire, integrate and grow a network of leading services and/or products providers that will together become a dominant strategic supplier to global customers. Eric Hamburg was an early pioneer of buy-build acquisition strategies which became popular in private equity in the mid 1990’s.
We are not asset managers; we always invest our own money, which ensures that we act and think like true owners, which we are. We take a long-term perspective.
We possess the necessary skills and experience to lead the restructuring of financially or operationally underperforming companies, as well as build proven business models into next generation market-leading enterprises.
Industrial Renaissance seeks to invest in growing or mature businesses with revenues that generally fall into two categories – $15 million to $100 million in revenues, and from $100 million to $1+ billion in revenues.
Our Approach, Four Main Ways We Invest
The cornerstone of our investment thesis encompasses four approaches, which can often be combined.
Acquisition of Underperforming Companies and Turnarounds
Industrial Renaissance will invest in financially troubled or underperforming companies that exhibit the potential for operational improvement, but are underperforming for such reasons as an over-leveraged balance sheet, lack of working capital, the need for an equity infusion, poor cost controls, absence of a management leader or gaps in the management team, macro-economic factors outside their control, economic downturns, and changes in the business cycle.
Industrial Renaissance will lead the financial restructuring and turnaround of a company. We will reshape and restructure its balance sheet, and work vigorously with new and existing management to make sustainable improvements. We prefer to provide the entire right side of the balance sheet (debt through equity) in order to control the variables in the turnaround of an underperforming company.
We are a solution for companies in need of capital and a balance sheet and operational restructuring strategy.
Acquisition of Companies with Disruptive Technologies
Industrial Renaissance will invest in companies with disruptive technologies that have developed breakthrough innovations or inventions that can create an early market opportunity and lead to explosive growth, but may need help with developing a breakthrough strategy, operational improvements, filling gaps in the management team, revenue growth, implementing processes and systems, etc.
For companies with disruptive technologies, Industrial Renaissance will structure the balance sheet to provide a foundation for future growth and and work vigorously with new and existing management to make sustainable improvements.
We are a solution for companies in need of capital, and assistance in creating velocity in the implementation of a disruptive technology to capture market share and achieve high growth in revenues.
Buy-Build Acquisition Strategies
Industrial Renaissance will identify an unconsolidated industry for investment based on thorough research and analysis and, in partnership with new and existing management teams, acquire and integrate established companies into a platform that will create a “category killer” within industry segments.
We are an investment company focused on investment strategies based on intensive research to design enterprises that will better serve the customer and change the way businesses operate in an industry segment. In accordance, we proactively identify, acquire, integrate, and grow a network of leading products and / or services providers that will together become a dominant strategic supplier to global corporations and consumers.
We will initially acquire and recapitalize established companies in order to form a platform company.
We will expand through aggressive organic growth, as well as the continued acquisition of complementary businesses. These moderately sized “business building blocks” will transform the initial platform acquisition into a market-leading enterprise that will generate significant growth in revenues, profitability and equity value.
Through our proactive strategies we generate a steady stream of proprietary, non-auction deal flow.
CEO-Backed Acquisition Strategies
Instead of first focusing on a “company” as an opportunity, we will often start with a “proven CEO and team”, develop an investment strategy around them, and then find and acquire companies for them to run.
Industrial Renaissance partners with highly accomplished CEOs and management teams to execute acquisition strategies to form dominant companies.
CEO characteristics we look for are:
- History of strong performance in P&L and balance sheet management
- Repeated record of significant achievements and making budget
- Strategic thinker
- Industry and competitive knowledge
- Vision for industry development
- Team builder
- Appropriate risk profile
- Hungry
- Compatible personality
We will work with the CEO to develop, validate, and document an investment strategy; conduct thorough research to identify attractive industries and industry sub sectors; and find and pursue acquisition targets to develop deal flow, ideally on a proprietary and non-auction basis.
Industrial Renaissance offers highly accomplished CEOs all the services needed to build significant enterprises through acquisitions on a turnkey basis.
