We rely on the talents of experienced management teams to run the day to day operations of our partner companies. Through board level support we assist these leading lower middle market companies to increase revenues and build long term value. We do this by aligning economic interests and bringing our time tested knowledge of small business needs to bear.
When we find an opportunity to partner with a company we work with the current owners and management team to create a structure that works for all involved.
ICV invests significant cash equity in a company, typically 45% to 55% of the transaction value. The balance of the transaction is funded with senior debt only. This structure provides for safe balance sheets in tough market environments and operational flexibility to make needed investments in the company. At ICV, we are focused on growing cash flow versus financial engineering through excessive debt.
Management always has a meaningful equity position, and a performance-based stock option program is instituted to allow the management team to receive disproportionate benefit from the equity appreciation they create.