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Growth Capital

Hyman Capital Partners - Growth Capital Partners

The 21st century is a challenging period for Private Equity (PE) Houses. Management ability to add value in transactions is now a crucial element in raising future funds. There is a phenomenal amount of competition to get the very best deals. The PE Houses’ abilities to aggressively leverage transactions is diminishing despite the recent modest increases in M&A (Mergers and Acquisitions).

Our Skills for your success

  • Needs based
  • Skills transfer
  • Diagnose issues
  • Action orientated
  • Relationship based
  • Partner with portfolio team funders
  • Resources (joint project team / interim / permanent recruitment)
  • Culture change
  • Board reporting
  • New relationships
  • Key Performance Indicators
  • Pre-deal evaluation
  • Cost savings on external advisors
  • Management team assessments
  • Managing performance and building value are at the heart of the of our current market focus
PE Houses currently require a wider range of skills to draw upon than they have previously needed. Clients’ expectations have expanded to go beyond the time when you sign on the dotted line. A longer-term partnership is established. We offer a complete solution that assists our clients with dealing, portfolio management and other strategic issues. We have a broad range of commercial skills that our PE clients need.

So what are you waiting for…pick up the phone or fire up Outlook and contact us.

Clive Hyman – Managing Director
clive.hyman@hymancapital.com

Funding

Let’s face it – It takes longer to raise capital than it used to be. People are less willing to invest in Initial Fundraising.

A talented investor takes into account a range of factors when evaluating an investment opportunity. These factors can include:

  • The credibility of the team;
  • Industry experience and ability to add value;
  • The robustness of the house's systems, risk management and governance procedures;
  • The way tax structures match their individual complex needs;
  • The clarity and substance of the key messages presented.

There is an increasing demand for a more transparent presentation of investment performance. Fund providers know that valuations are based on guidelines.

PE houses can draw investors from the diverse global investment community. Tax considerations will be of paramount importance to these investors. Our advisors have a global reach and the ability to give you some of the most appealing products and services.

Investments and Deals

Private Equity Houses are under constant pressure to continually “make deals.”

The PE House’s greatest talent is their ability to optimise the deal flow and assessment process. The keys to building relationships in the investment community are: clarity of strategic industry focus and targeted deal size. How effectively our clients present to the market, and the strength of their contacts will drive their deal flow. Our Private Equity professionals have an established record in helping clients with their deal flow.
 

“A review of Historic Financials - That’s transaction advice, isn’t it?”

In the current market it has to go way beyond that! Our Financial advice focuses on the potential to create value by quantifying the risks and uncertainties inherent in the deal. Our clients can achieve a thorough understanding of the target business in a timely fashion, the markets it operates within and the key operational challenges that it faces.

Hyman Capital’s team will explain whether sales, cost and cash flow projections are supportable so that a deal can be priced effectively. We also identify value-adding opportunities that have not been previously identified by either management or a vendor that can provide the key to winning an auction. We can build a team that suits the PE house’s needs, based on personnel with the appropriate deal experience. e.g. LBO (Leveraged Buy-Out), MBO (Management Buy-Out), early stage, turnaround and sector experience.

Many companies believe that purchasing a company is the end of the deal. We know that this is certainly not the case. A successful deal is one where the exit results in a good return. Consequently we see our transaction evaluation services as the first step in helping you create value out of your new purchase.

Portfolio Management

The days are long gone when PE (Private Equity) houses only needed to watch their portfolio companies (and occasionally check that they were on track and ready to exit.) Now the emphasis is on improving performance and enhancing value. An increasing number of our clients are taking an active approach to managing existing assets. PE houses are evolving into much more than mere financial buyers.

The key to success in sourcing deals and fundraising is to show the added value that a company is capable of. This requires effective portfolio management and for the PE house, there are a number of critical considerations:

  • Avoiding nasty surprises.
    Many organisations do not possess enough relevant and up-to-date management information;
  • Intervening only when necessary.
    Critical matters need to be identified and targeted long before any of them can develop into a problem. This allows a swift response if they do ever start to be a problem as a “battleplan” has already been formulated.
  • Benefits all across the portfolio.
    Organisations need to take advantage of all the available opportunities, as business pressure increases, that come from the economies of scale inherent when owning multiple businesses.

Interviews, workshops and performance data help pinpoint the key issues. Factual Comparisons with competitors and our experience of working with similar businesses is used to provide the right strategy for our customers’ businesses. Building and implementing effective action plans that make a real difference is our particular forte.

When completed, your management team we be able to develop a project plan encompassing the strategic, operational and financial inputs required to improve performance. Taking account of cultural and other factors that affect the way an organisation functions, Hyman Capital will develop a program of change that is beneficial and effective.

Realising Value

The acquisition is the first stage in value realisation planning. This is increasingly through methods other than a total exit – a partial exit. More difficult market conditions have made PE houses acutely aware of mistakes at the acquisition stage. More emphasis is therefore put on planning realisations at the pre-investment phase of the deal.

A partial exit allows refinancing by gearing-up a portfolio company to enable a shareholder to realise some of its investment. Hyman Capital assists PE Houses in building credible plans to support a case for refinancing, who may view a partial exit somewhat sceptically. This is also of benefit when dealing with banks (that often ask for an independent report on the projections underpinning a re-financing situation.) In order to lower debt to an acceptable level, there may subsequently be the need for the disposal of certain elements of a business after re-financing has been completed.
 

In a total exit situation, Hyman Capital are often asked to assist in locating a buyer for a particular investment and to determine whether it has been groomed effectively for disposal. We challenge the projections at an early stage to determine if they are robust. In a climate where the pressure to achieve good returns is high, vendor initiated due diligence can be a vital tool for achieving a successful sale.
 

The degree to which a portfolio business can be broken up and sold piecemeal is also an important factor when the entire business cannot be sold for whatever reason. This may only prove to be possible where the business has distinct elements that lend themselves to separate disposals at attractive prices. Asset stripping potential is something that must be considered prior to acquisition rather than afterwards.
 

Another important consideration is increasing the post tax returns to the fund investors, PE house executives and management, who in complex cases could be based in numerous jurisdictions. The tax elements of realising the value of an investment should not be underestimated. Any tax cost can affect investors' returns, particularly where multi-jurisdictional businesses are involved

Flexible Executive Resources

Hyman Capital Services is a decentralized collective of senior professionals with hands-on experience across high-growth industries and throughout the corporate and investment lifecycles, providing strategic counsel, outsourced implementation and turnkey programs. The practice specialises in facilitating the provision of expertise by senior Executives and Managers. It enables company principals to advance their business and achieve their goals by providing them with the best available assistance from the experienced executives in a cost effective and professional manner.

Services

We recognise that growing businesses need talented and experienced individuals from a range of backgrounds. We help to meet this need through supplying (part-time and full-time):

  • project managers
  • specialists in finance, marketing and HR
  • operational and supply chain executives
  • CEO’s, Chairman and non-exec directors

on a range of assignments, often associated with organisational growth, efficiency enhancements or change management. We provide people who think strategically, yet are adaptable and effective at proposing and achieving practical results. They are focused on added value and our performance management system evaluates the tangible benefit to the organization. We provide cost effective resources, focused on client needs, rapidly to any sector through our network of experienced associates.