Our Investment Approach

When it comes to acquisition candidates, Synergy Enterprises looks for distressed and underperforming companies with a prior history of positive earnings and cash flows. Our focus is on retail, distribution and select manufacturing businesses that are well positioned in their industries.

The companies we consider for acquisition are typically non-core subsidiaries or operating divisions of parent companies – either privately-held or publicly traded – that are underperforming, or no longer a fit within the broader strategic framework of the parent company.

Utilizing unparalleled expertise across virtually every aspect of turnaround management – including industry-specific strengths and in-depth knowledge and experience in retail operations, branding and distribution – Synergy Enterprises combines extensive financial restructuring and hands-on operating experience to transform its platform companies into industry leaders.

Synergy’s investment approach is based on the following:

Commitment To Working In Partnership With Management – An effective, value-building turnaround requires all parties involved to work in close concert with one another. Synergy prides itself on working in close partnership with management teams both throughout the due diligence process and post-acquisition basis. As a rule, we only acquire companies on a friendly basis. In addition, we believe in compensating management so that our goals are consistently aligned by developing incentive-based and stock option programs that reward performance as objectives are met.

Liquidity– For any company, the right capital structure is critical for future success. For all of our platform companies, we provide a capital structure that includes appropriate levels of liquidity both during and after a turnaround. We are strong believers in flexible yet prudent financing that provides sufficient latitude to cover unexpected shortfalls in working capital, while continuing to make necessary capital investments. We have a strong track record to showcase in this area, with aggregate funding commitments approaching $1 billion over the last ten years.

Discretion And Sensitivity – The challenges inherent in managing an effective turnaround require more than just attention to the financial and operational restructuring efforts – a deep understanding of the sensitivities involved is also critical. We at Synergy pride ourselves on conducting our transactions and pursuing turnaround activities with a maximum level of discretion.

Flexibility And A Focus On Rapid Results – Importantly, Synergy has a demonstrated track record of flexibility in structuring its transactions to accommodate a diversity of tax and financial reporting requirements. At the same time, the firm is focused on aligning the capabilities it brings to bear on each transaction and turnaround situation to produce rapid, value-creating results.

Long-Term Focus – We are patient investors focused on maximizing value over the long term. We do not engage in acquisitions with mandatory exit timetables. We make exit decisions in concert with management and our financial partners.