OVERVIEW

 OVERVIEW

Millpond invests in high quality, growing companies. Through more than fifty years of combined experience, we have learned that entrepreneurs and management teams often encounter a common set of opportunities and challenges.

Millpond, in partnership with management, works to develop an appropriate strategy, target key growth opportunities, and employ operational best practices developed over many years of hands-on operational and portfolio management. Millpond drives returns in the lower middle market businesses it partners with by assisting with the necessary investment human and business resources to achieve superior levels of performance, quality and growth.

  Why Millpond?

  Why Millpond?

Experienced Partners

We are proactive investors with deep experience and a proven track record in our two sectors of investment focus.  We have been partnering with growth oriented middle market service businesses for over 20 years and draw on the experience to create value with our partner businesses in the lower middle market.

Collaborative Approach

We use a collaborative approach to partner with management teams through the Millpond Operating Process, a set of tools and processes to assist with driving continued growth in their companies through a variety of strategic and operational initiatives and can also provide the resources necessary to execute highly accretive add-on acquisitions.

Focused Strategy

We have extensive experience and resources and are committed to staying small enough for our principals to remain actively engaged in each portfolio company to assist our partner management teams to execute their strategy. Our sole focus on our investment sectors provides a depth of knowledge that enables us to immediately begin value enhancing activities with our partner companies.

“When Air-Evac Lifetime consisted of 32 airbases serving rural markets in nine Midwestern states, the Millpond Principals shared our vision for growing a national air medical services provider. Their assistance in implementing the airbase roll-out strategy and executing strategic acquisitions was crucial to our long-term success and served as the foundation for our position as a nationwide leader.”

Collin Collins – Former Chairman / CEO – Air Medical Group Holdings / Air Evac Lifeteam

Working with Millpond

Working with Millpond

At Millpond, we believe the foundation for value creation begins with the relationships we have with our partners. Key tenants of these relationships include collaborating to:

  • Develop an understanding of key goals and objectives
  • Share a common vision for strategic direction
  • Support management’s execution of strategic plans
  • Align interests throughout the value creation process
  • Communicate proactively, directly, and clearly

This approach has been very successful in enabling Millpond and our partner businesses to deliver exceptional performance and create significant value.

Prior to closing, business sellers can expect:

  • Dedicated, ethical, and reliable partners
  • Certainty to close, including an emphasis on collaboration and empathy toward management’s needs
  • Engagement of diligence providers (e.g. accounting, tax, lawyers,insurance) with a track record of delivering results on-schedule, leading to an efficient closing process

Post-closing, our partners can expect a collaborative approach to facilitating the development of strategic and tactical action plans with management predicated upon our experience working with lower-middle market companies and proven track record in our sectors of focus. Additionally, Millpond will bring to bear a proven operating process and operating expertise which it will draw upon to assist with the development of management systems and processes to professionalize a business, fostering rapid, profitable growth.

As experienced investors in the Education & Training and Outsourced Business Services sectors, we understand that shareholder goals including growth, profitability, and equity value creation require offering best-in-class products, services, and support, but we also understand that other stakeholders, including our investors, customers, suppliers, and the communities they are a part of, are positively impacted when the businesses that we help to grow are successful in every regard. Given the sectors we focus in, we strive to focus on a “dual bottom line” of simultaneously having a positive impact on all stakeholders while driving profitable growth and value creation.

“I have had the pleasure of working with the Millpond Principals since 2003. Their role in sourcing, structuring, financing, and closing 11 add-on acquisitions was instrumental to our growth strategy, allowing us to expand our brand and product portfolio and improve our relationships with key customers.”

Harry Whaley – CEO – Woodstream

Investment Philosophy

Investment Philosophy

Deep Industry Experience

Through our committed emphasis on the education, training, and outsourced business services sectors, the Millpond team has developed a deep understanding of both the macroeconomic forces and specific business-related factors impacting those industries. We are able to offer valuable insight to management teams regarding potential opportunities and risks, as well as provide specific knowledge and perspective on industry trends, market participants, and industry best practices. In addition, we have built an extensive network of operating advisers and industry contacts who are subject matter experts and can provide management with additional valuable guidance and advice.

Operational Expertise

While we are not, nor seek to be, day-to-day managers of our partner companies, Millpond offers an active level of support to transform lower middle market businesses and accelerate achievement of their strategic plans. We have worked closely with dozens of companies through our careers, particularly within the education, training, and outsourced business services sectors. With extensive board level and operating executive experience, we assist management teams as they define, prioritize and implement growth initiatives; expand and diversify service or product offerings, geographical presence, and customer bases; build and develop their human capital base; develop key financial reporting metrics and accountability; complete strategic add-on acquisitions; and implement various other operational improvements.

Focus on Value Creation

We identify and invest in companies sharing a core set of defining business model characteristics: a strong value proposition; sustainable competitive differentiation; and recurring revenue elements. We have consistently leveraged the advantages these value drivers enable to unlock value in our investments by focusing on the key value propositions when prioritizing growth initiatives; highlighting the company’s competitive advantages to the market; and enhancing customer relationships to drive recurring revenue.

Aligned Interests with Management

Millpond believes in partnering with and sharing the rewards of growth with its strong, growth-oriented management teams. We understand the goals and objectives of our partners and strive to structure a relationship that provides win-win solutions. We offer entrepreneurs and owners an opportunity to achieve liquidity, while, if desired, retaining a continued investment interest in their business. For managers who are not exiting business owners, we create a path for equity ownership by facilitating direct investment into their company, as well as participation in a stock option or other equity incentive program.

Honest and Straightforward Partners

At Millpond, we believe in delivering on our commitments and exceeding the expectations of all of our stakeholders, including sellers, management teams, lenders, and investors. We possess a track record not only of successful investment returns, but also of integrity and long-term partnerships.

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