PROCESS AND STRATEGIC INVESTMENTS TO CATALYZE GROWTH
DelCam Holdings focuses on the acquisition of reputable manufacturing companies with revenue between $2M-$5M that are cash flow positive and have capacity in place to grow in their current location.
The management company intends to complete various acquisitions in complimentary businesses. DelCam expects to grow annual revenues of the companies at an above market rate over the entire investment holding period. The objective is to increase the profit margins substantially from baseline levels at the time of acquisition, dramatically enhancing the value of each company.
After an acquisition is made, a comprehensive review will be completed by the management company and key consultants within the first three months post-acquisition. The results of the review will be translated into a value creation plan of action to fuel growth in the immediate term, intermediate term, and long term to maximize the value of the companies. Some of the key investments that will be made are as follows:
Aerospace, Defense & Quality Certifications – Obtain certifications to increase portfolio company credibility and open the door to more sales opportunities.
Labor Bench & Training – Identify strategic sources of labor to ensure portfolio companies are staffed appropriately and have the right personnel depth to grow the businesses. Implement a portfolio wide apprentice program, lure high performing workers from competitors with incentives, and hire excellent leadership to drive exponential growth. Cross train employees to improve overall output and to protect against loss of resources.
Sales – Add sales staff in a balanced manner where needed to propel the top line growth of the companies. Many small manufacturing companies do not have a dedicated sales force and can greatly benefit from the addition of key sales personnel. Cross-sell to other portfolio company customer bases where possible in order to drive growth from within while avoiding potential cannibalization with appropriate controls.
Technology – Software and systems will be a key tenet of DelCam’s strategic investments. Ensuring portfolio companies are using the most up to date ERP, CRM, Accounting, Design and Costing software and also investing in technology to integrate the portfolio companies on to a consistent platform across the board.
Equipment – Automation will be a key factor that will enable our portfolio companies to generate scale and to enhance profits. We will invest in modern machinery, and ensure employees are appropriately trained on how to use the equipment.
Operational Optimization for Maximum Capacity – Evaluate and invest in improvements around the efficiencies of day-to-day operations in the manufacturing plant. Ensure optimal set up utilizing best practices and methodologies to maximize capacity.
Real Estate – Acquire real estate to serve as a consolidation landing ground for the portfolio companies over time. Potentially leverage real estate vacated via consolidation for other development projects.
Research and Development – Produce higher value and higher margin product to increase value to customers so they become stickier. Develop new products and services to help drive growth and increase sales.