Philosophy

Brynavon is a private investment company and not a traditional private equity group; the major differences are:

• Brynavon focuses exclusively on the ownership transition between a company’s existing ownership structure and a company’s management team. Within Brynavon’s current portfolio, managers and former managers own 40 – 50% of the equity and Brynavon owns the balance.
• Brynavon’s target market is comprised of companies with EBITDA of $1 – 2 million which is normally too large for an individual to acquire and too small to support the overhead of a private equity group.
• Brynavon invests private capital from its founding family and certain additional individuals. As a result, investments are made for the long-term and not to satisfy the usual short-term goals of private equity limited partners. During the last 6 years Brynavon has divested three operations and the average investment time was 12.7 years.
• Investment decisions at Brynavon are not made by a committee of investors so indications of interest or valuation can be made rapidly.

One of the most logical new owners for these businesses is the management team which helped build the Company. Brynavon believes that if they invest their capital alongside of successful managers to acquire the business for which they work, then the results will be a beneficial solution for all stakeholders. Real ownership, not stock options or phantom stock, changes the way managers approach their business decisions; in essence it makes them better managers and better owners.

Acquisitions are the keystone of The Brynavon Group’s long-term strategy. The Group has enjoyed the benefits of diversification through acquisitions as well as the market leverage of strategic acquisitions. Brynavon believes that a small to medium-sized company, responsive to its market niche, is much less susceptible to price competition.

There are several variables that comprise a good acquisition candidate: size, price, profitability, leverage, work force, location, markets, management, and deal structure. The strength of any one of these factors might compensate for the weakness of another. Brynavon’s flexible acquisition strategy allows the Group to capitalize on opportunities that another acquirer might ignore.

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