Creating effective partnerships with management
H.I.G.’s philosophy is to invest in operating companies that can take advantage of our ability to add value to a business. This expertise makes us better able to recognize the inherent value of a company, which allows us to place a higher valuation on a business enterprise than would a strictly financially driven investment firm. It also allows us to consider more challenging investment opportunities, such as underperforming businesses or businesses facing strategic or operational challenges or complex structural issues.
We recognize that a mature, qualified management team is critical to the success of our acquisitions. We believe in providing management teams with considerable incentives, including the opportunity to significantly participate in equity ownership.
We believe that the motivations of an equity partner must be in line with those of the management team. With this in mind, H.I.G. maintains a collaborative relationship with its operating companies. We work closely with our management teams and serve as an experienced resource, providing broad-based strategic and consulting services, focusing on developing and implementing specific operating improvements designed to increase the value of the enterprise.
We also believe in a high level of autonomy for the management team and do not become involved in the day-to-day business operations of our portfolio companies. Instead, we work closely with management to set strategic goals and priorities and to help make the key business decisions facing the company, which we believe are the drivers to generate significant long-term incremental value.