Value Creation

Inflection’s path to value creation begins with differentiated transaction sourcing capabilities. Our Investment Partners, working closely with a dedicated Operating Partner with expert sector knowledge, identify attractive sub-sectors within our core industry verticals that match well with our sector views, the firm’s investment history and the skills and expertise of our investment team. We then perform exhaustive research on the particular sub-sector to develop a proprietary investment thesis and, ultimately, a list of investment targets.

Value creation under Inflection Capital ownership involves partnering with management to execute transformational strategies which are identified and quantified in due diligence and incorporated into a strategic plan to be implemented following the closing of the transaction.  .

Enhancement of Management Capabilities

Implementing business transformation requires exceptional management teams. For some of our portfolio companies, assembling the right team involves adding, following the initial transaction, discrete functional expertise necessary to support the growth needs and expectation for business scale expansion called for in the strategic plan. For others, often in corporate carve-out situations, building the appropriate management group requires broad-based senior level executive additions.  

Operational Efficiency

Execution of an operational improvement plan is a vital component of value creation in the early phases of an Inflection Capital investment. Improvement initiatives are unique to each portfolio company, but share broad themes. In investments across our service verticals (Healthcare Services and consumer Services), efficiency gains are typically achieved through industry consolidation and increased scale, centralization of process and implementation of technology to enable the Company to achieve best-in-class standards.

Accelerated Growth and Business Repositioning

The second phase of Inflections’ ownership is a focus on accelerated investment in revenue-building opportunities to create a superior, sustainable growth profile for the company. In each new portfolio company, a growth plan is implemented, frequently calling for savings generated through efficiency gains to be reinvested back into the businesses in the form of new product innovation and introduction, new market penetration and/or capacity expansion. In addition, in most of our investments, we will pursue and complete add-on acquisitions that afford an opportunity to complement existing products and distribution, while also creating impetus for further synergy and cost reduction through efficiencies of scale.

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