Our Big Picture
We get excited about well-established companies that have been run by good people. Business metrics are important; we value integrity above all else as it is at the core of every good business transaction.
We are focused on Return on Equity and Return on Invested Capital; additionally, we are still of the old-school belief that a business is worth the present value of its future cash flow at a reasonable discount rate. We prefer businesses that generate high returns on equity and do not require significant leverage to achieve these returns.
Long Investment Horizon
Alder Bay is not a fund of pooled investor capital. As such, we do not have a requirement to return capital to investors through the resale of the businesses we acquire. Accordingly, we do not require excessive leverage or cost-cutting to maximize short-term returns. We like businesses that we can help grow steadily for the long-term.
Aligning Interests
Just as every business is unique, we believe that every entrepreneur’s ownership succession priorities are unique. Some business owners value their financial bottom line at the sale above all else. Many require comfort in knowing that their long-tenured managers, employees and company culture will thrive. Still others are principally concerned that their family business legacy grows under new ownership.
We like to listen to what’s important and, where there is a mutual fit, agree on a deal that aligns the interests of all parties.
Confidentiality
When selling a business, we understand that confidentiality is critical. Unplanned word of a potential sale among employees, customers or suppliers can create undue uncertainty about a company’s future. That perceived uncertainty can be damaging to any business. We take confidentiality seriously.
We get excited about well-established companies that have been run by good people. Business metrics are important; we value integrity above all else as it is at the core of every good business transaction.
We are focused on Return on Equity and Return on Invested Capital; additionally, we are still of the old-school belief that a business is worth the present value of its future cash flow at a reasonable discount rate. We prefer businesses that generate high returns on equity and do not require significant leverage to achieve these returns.
Long Investment Horizon
Alder Bay is not a fund of pooled investor capital. As such, we do not have a requirement to return capital to investors through the resale of the businesses we acquire. Accordingly, we do not require excessive leverage or cost-cutting to maximize short-term returns. We like businesses that we can help grow steadily for the long-term.
Aligning Interests
Just as every business is unique, we believe that every entrepreneur’s ownership succession priorities are unique. Some business owners value their financial bottom line at the sale above all else. Many require comfort in knowing that their long-tenured managers, employees and company culture will thrive. Still others are principally concerned that their family business legacy grows under new ownership.
We like to listen to what’s important and, where there is a mutual fit, agree on a deal that aligns the interests of all parties.
Confidentiality
When selling a business, we understand that confidentiality is critical. Unplanned word of a potential sale among employees, customers or suppliers can create undue uncertainty about a company’s future. That perceived uncertainty can be damaging to any business. We take confidentiality seriously.