Empire achieves its investment objectives by acquiring lower middle market companies and then employing a hands-on operational approach to unlocking and growing value post close. The strategy principally focuses on mature businesses that meet some or all of the following investment criteria: an established and loyal customer base, mission critical products and/or services, recurring or predictable revenues, sizable market share, business to business relationships and underperformance due to strategic, operational, organizational and/or financial challenges. The firm does not focus on any particular industry, preferring to maintain a diversified portfolio of businesses.
- Public & Private Corporations
- Private Equity Firms
- Privately Held Companies
- HQ in the US (can have international locations)
- Revenue $10mm plus
- EBITDA – Negative to $5mm
- Industry agnostic
- Mature businesses
- Facing operational, financial, organizational and/or strategic challenges
- Sizable market share
- Growth prospects
- Mission critical products and services
- Business to business relationships
- Recurring and/or predictable revenues
Empire’s core philosophy is to create long-term enterprise and strategic value in its portfolio companies. The approach to creating value is derived through a disciplined and structured investment process. Each phase is essential to Empire’s core philosophy. This unique investment process leverages Empire’s in-house capabilities. Empire’s investment professionals are organized into two teams: the M&A team, which is responsible for business development, new investments and realizations, and the Operations team, which is responsible for operational due diligence, transitions and ongoing oversight. These teams work closely together in a process that is coordinated by the Investment Committee.
Mergers & Acquisitions
The M&A team is always prepared to mobilize and coordinate the resources needed to quickly evaluate and execute an investment opportunity. The team is comprised of dedicated in-house professionals that support every facet of a transaction. Empire employs a rigorous, intimate and disciplined approach to evaluating each potential investment. Given the resident experience of having evaluated hundreds of investment opportunities for more than 15 years, the team can move rapidly through the due diligence process. The Operations team engages early in the investment process with the M&A team, in order to gain a deep understanding of each particular business.
The first 120 days of a newly acquired business are the most critical to the success of each investment. The Operations team supports management in the execution of a transition plan designed to capture the operational, extraction and strategic needs of all newly acquired businesses. Once the transition phase is complete, each portfolio company benefits from the firms proactive and ongoing involvement. Empire believes that autonomous and empowered management is critical to the long-term success of any business. Empire’s objective is to position each portfolio company to possess the four basic fundamentals that it believes are essential to operating a successful business: strong management and workforce, operational excellence, financial stability and clear long-term strategic direction. In order to have standalone and autonomous portfolio companies, Empire fully empowers each management team to make all relevant business decisions, while being held accountable for its management of day-to-day operations and the execution of the portfolio company’s strategic growth plan. Portfolio companies benefit from Empire’s depth of experience to fundamental leadership principles, without being subjected to micromanagement. The Empire approach frames investment objectives and promotes the strategic positioning necessary to recognizing Empire’s over arching commitment to unlocking and enhancing value.