Overview
We seek acquisitions of underperforming, or disruptive technology private companies and public subsidiaries where our participation, in partnership with management teams, can transform companies and the industry segments in which they compete, to create large, dominant, highly profitable businesses with long-term competitive differentiation.
Industrial Renaissance’s business model is based on deliberate business strategy to create market opportunity, competitive advantage, and economic value, not financial engineering.
We develop strategic plans to design enterprises that will better serve the customer and enhance the ways they compete in an industry segment.
When appropriate, we use buy-build acquisition techniques to grow via the acquisition of complementary businesses, where we proactively identify, acquire, integrate and grow a network of leading services and/or products providers that will together become a dominant strategic supplier to global customers. Eric Hamburg was an early pioneer of buy-build acquisition strategies which became popular in private equity in the mid 1990’s.
We are not asset managers; we always invest our own money, which ensures that we act and think like true owners, which we are. We take a long-term perspective.
We possess the necessary skills and experience to lead the restructuring of financially or operationally underperforming companies, as well as build proven business models into next generation market-leading enterprises.
Industrial Renaissance seeks to invest in growing or mature businesses with revenues that generally fall into two categories – $2 million to $25 million in revenues, and from $25 million to $200+ million in revenues.
The cornerstone of our investment thesis encompasses four approaches, which can often be combined:
Our Approach, Four Main Ways We Invest
Overview
Industrial Renaissance specializes in assisting underperforming companies overcome complex financial and operational challenges, and companies with disruptive technologies achieve velocity and growth. Often a company’s balance sheet and debt burden, or its operating challenges, or lack of a breakthrough plan, will prevent it from moving forward. Since the mid-1980’s Eric Hamburg has led the turnaround of numerous underperforming companies across a wide variety of industries by implementing just-in-time, process reengineering, and “lean” techniques, to add value, increase profitability, and reduce working capital. Since the mid-1990’s Eric has led several financial and balance sheet restructurings; and several buy-build acquisition strategies to exponentially accelerate revenue growth. He is not a business broker, investment banker, or a venture capitalist. He is a builder of businesses. Furthering and complementing Eric’s experience, Industrial Renaissance’s Senior Advisors are some of the best operators in industry. So Industrial Renaissance is unique in the private equity and venture capital industry in that its principals and Senior Advisors combine business strategy, operations restructuring and building, financial restructuring, and revenue building, skills and experience to assist underperforming companies and companies with disruptive technologies achieve their goals.
Acquisition of Underperforming Companies and Turnarounds
Industrial Renaissance will invest in financially troubled companies that exhibit the potential for operational improvement, but are underperforming for such reasons as an over-leveraged balance sheet, lack of working capital, the need for an equity infusion, poor cost controls, absence of a management leader or gaps in the management team, macro-economic factors outside their control, economic downturns, and changes in the business cycle.
For companies with $2 million to $25 million in revenues, Industrial Renaissance will restructure the balance sheet and work vigorously to make sustainable improvements in the company. We prefer to provide the entire right side of the balance sheet where possible (debt through equity) in order to control the variables in the turnaround of an underperforming company. Too many times it is too difficult when third party lenders are involved. After a company has been turned around and it is successfully executing its strategic plan, we may then refinance the company with traditional third party lenders.
For companies with $25 million to $200 million in revenues, we will shape, or work with other prominent institutions to influence, the financial restructuring of a company and re-constitution of its balance sheet, and work vigorously to make sustainable improvements in the company.
We are a solution for small to lower middle market companies in need of capital and a balance sheet and operational restructuring strategy.
Acquisition of Companies with Disruptive Technologies
Industrial Renaissance will invest in companies with disruptive technologies that have developed breakthrough innovations or inventions that can create an early market opportunity and lead to explosive growth, but may need help with developing a breakthrough strategy, operational improvements, filling gaps in the management team, revenue growth, implementing processes and systems, etc.
For companies with disruptive technologies, Industrial Renaissance will structure the balance sheet to provide a foundation for future growth and work vigorously with founders/management to make sustainable improvements in the company. Where possible we prefer to provide the entire right side of the balance sheet (debt through equity) in order to control the variables in the growth of a company with a disruptive technology, and since financing these companies through traditional lenders is often very difficult and can slow down the execution of a company’s growth plan. After a company is successfully executing its strategic plan, we may then refinance the company with traditional third party lenders.
We are a solution for small to lower middle market companies in need of capital, and assistance in creating velocity in the implementation of a disruptive technology to capture market share and achieve high growth in revenues.
Buy-Build Acquisition Strategies
Industrial Renaissance will identify an unconsolidated industry for investment based on thorough research and analysis and, in partnership with new and existing management teams, acquire and consolidate established companies that will create a “category killer” within industry segments.
We are an investment company focused on investment strategies based on intensive research to design enterprises that will better serve the customer and change the way businesses operate in an industry segment. In accordance, we proactively identify, acquire, integrate, and grow a network of leading services and / or products providers that will together become a dominant strategic supplier to global corporations and consumers.
We will initially acquire and recapitalize established companies in order to form a platform company.
We will expand through aggressive organic growth, as well as the continued acquisition of complementary businesses. These moderately sized “business building blocks” will transform the initial platform acquisition into a market-leading enterprise that will generate significant growth in revenues, profitability and equity value.
Through our proactive strategies we generate a steady stream of proprietary, non-auction deal flow.
CEO-Backed Acquisition Strategies
Instead of first focusing on a “company” as an opportunity, we will often start with a “proven CEO and team”, develop an investment strategy around them, and then find and acquire companies for them to run.
Industrial Renaissance partners with highly accomplished CEOs and management teams to execute acquisition strategies to form dominant companies.
CEO characteristics we look for are:
- History of strong performance in P&L and balance sheet management
- Repeated record of significant achievements and making budget
- Strategic thinker
- Industry and competitive knowledge
- Vision for industry development
- Team builder
- Appropriate risk profile
- Hungry
- Compatible personality
We will work with the CEO to develop, validate, and document an investment strategy; conduct thorough research to identify attractive industries and industry sub sectors; and find and pursue acquisition targets to develop deal flow, ideally on a proprietary and non-auction basis.
Industrial Renaissance offers highly accomplished CEOs all the services needed to build significant enterprises through acquisitions on a turnkey basis.
Most “CEO-Backed” strategies are also “Buy-Build” strategies.
