- Commitment – In the near term we are structured to do one acquisition. Post-acquisition we will spend all our time on the development and growth of the acquired company, including complementary acquisitions. XITO’s managing partners will become full-time operators and be strengthened by a dedicated board of directors. In contrast, most private equity firms treat acquired companies as part of a portfolio of businesses. Similarly, strategic partners typically view the acquisition as one of many business units/divisions.
- Patient Long-Term Investment Approach – Because we are not structured as a traditional private equity fund, our company does not have a predetermined investment time horizon and do not face pressure to sell our investments within a given time period. Accordingly, we will work to ensure everything we do is with a long-term mind set, developing and growing the business for the future.
- Flexible Deal Structuring – We will work with the business owner to discuss pricing and deal structuring expectations for the company (i.e. estate planning, tax & family needs, real estate in the transaction, the desired level of involvement post-sale, and other unique requirements) to reflect our mutually beneficial interests. We prefer opportunities where the owner wants to continue to be involved in a managerial or advisory capacity along with our management team for several years before retirement.
- Experienced Investors & Board of Directors –To ensure accountability for the management team, we will create a Board of Directors comprised of a combination of investors, seasoned operators and value-added advisors.
- Smooth Transition –During our due diligence, we will work with the business owner to create a smooth transition plan that ensures business continuity with employees, suppliers, customers, and other stakeholders. In collaboration with the existing team, our management team will pursue a number of initiatives to take the business to the next level in key areas of the business:
- Corporate Strategy: Developing a growth strategy that may include a combination of geographic expansion, expanded service offerings, and added investment in sales & marketing, or a combination of strategies that make the most sense for your business.
- Operational Improvements: We hope to leverage our team’s broad experience with companies from many different industries to implement best practices, such as sales and marketing improvements, human resources, IT systems upgrades, and other infrastructure needs.
- Finance: If needed, XITO’s investors may reserve additional capital for strategic acquisitions, working capital or expansion projects in the company’s future.