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Criteria
In general, Midwest Investment Ventures looks for the following characteristics in potential investments:
- Experienced management team with a demonstrated track record of success
- Clearly identified opportunities for the company to grow, either organically or through acquisitions
- A business system that supports the aspirations of the management team and potential of the business opportunity
- A focus on building shareholder value supported by employee equity participation
The returns from the investment are not primarily based upon real estate development or natural resource exploration.
Process
At Midwest Investment Ventures, we think about our investment process in three phases:
1. Make Astute Investments
We look for good companies with great management teams where our insights into the business will enable us to pay a full price to the vendor and be successful in the process. Our business model relies on a deep understanding of the business situation so that we are well prepared, effective partners to the management team when the investment has been completed.
The investment process involves understanding the key operating assumptions underpinning the business opportunity, developing an appropriate capital structure for the business, completing due diligence to validate the key assumptions and negotiating the details of the transaction.
2. Add Value During Ownership
Having generated some preliminary strategic insights into the business at the investment stage and placed the business on the optimal financial footing for success we then seek to use the management incentive program to align all the incentives of management and owners.
We work closely with management to achieve the goals of the business. Our objective is to hold an equity stake in the business that will give us significant influence at the board level. It is not our intention to be involved in the day to day management of business but rather to focus on the key business and strategic issues in a way that will lead to quick, effective decision-making.
3. Effect A Tailored Exit
Ultimately we generate returns for our investors by exiting our investments. We are patient investors and aim to tailor the exit in terms of both timing and mechanism to optimize the outcome for both our investors and the management team.
Our investors have given us the flexibility to hold investments for a long time so that we are able to see a good plan through from inception to implementation. Effectively exiting investments is critical to our investment success.
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