Transaction Process
Intervale Capital's goal is to minimize business disruption during due diligence. Our industry expertise and strong lender relationships allow us to move quickly through due diligence and financing. We present a detailed action plan to management at the outset of diligence, including timeline, roles and responsibilities, deliverables and areas of focus.
Typical areas of focus include a financial and accounting review, business forecast, competitive analysis, strategic analysis, tax analysis, organizational assessment and supplier and customer interviews. In addition, we hire third-party attorneys, accountants, insurance analysts and environmental engineers to work in tandem with us during the transaction process.
Our approval process for transactions is simple and efficient. We are the ideal investment partner for a company seeking to minimize distractions and lost time in the sale process.
The most important factor in any transaction for Intervale is the strength and integrity of the management team. We view each investment as a partnership, based on shared goals and values. Those partnerships rely on mutual respect and trust. We avoid investments in which we do not develop strong relationships with company management.
Post-Transaction Involvement
We do not seek to have Intervale Capital's professionals involved in day-to-day operations. We are most involved with portfolio companies during the first year of ownership. The first year is important for setting long-term strategic goals, putting proper compensation structures in place, developing appropriate reporting practices and ensuring that Intervale Capital and management have aligned incentives and a clearly defined strategy expressed in terms of key financial and operational goals.
Other areas of focus in the first year of ownership include:
Acquisitions
Governance
Expanding management teams to execute growth strategies
Balance sheet management, including capital expenditure oversight and working capital management
Collaboration with other Intervale portfolio companies
We are patient investors. If we believe in a management team and a business, we are not deterred by a bad quarter or an explainable setback. Our confidence in our investment judgment and understanding of the historically cyclical oilfield services industry helps us weather tough times together with management.
As Intervale and management develop a history together, our involvement tends to moderate after the first year of the investment.