Business Builder Process

Business building begins with disciplined origination and deal sourcing. Valor has developed deep relationships throughout the middle market, working directly with managers and business owners, as well as through intermediary sources. Starting with an internally developed research engine, Valor creates an ever adapting set of macroeconomic and microeconomic themes to focus the target universe on those sectors we believe to foster companies that have the characteristics most amenable to our business strategy.

Macro Investment Selection
Valor employs a macro top-down approach to identify market segments where long-term demand dynamics provide a favorable environment for building growth companies with sustainable, leading positions and superior returns on capital. Valor may spend years developing market segment ideas before making an investment. We generate ideas through internal and external primary and secondary research and through the deal flow Valor generates as a result of its relationships. Valor seeks investments that it can either reposition into these market positions or that already occupy strong positions in growing and sustainable market segments.

Micro Investment Selection
Valor employs a disciplined bottoms-up fundamental approach to identifying excellent value investment opportunities. Valor targets companies in the middle market with complex, addressable due diligence, operational, and strategic constraints to growth, and the potential for enhanced returns on capital. Employing a successful evolution process in such an environment is designed to drive above-market returns. By melding value and operational expertise in one investment, Valor seeks to create an investment opportunity with mitigated downside risk and excellent return potential.

Business building in a private equity environment is a significantly different functionality than simple operational improvements. It is proactive, not reactive. It is a creative, far-reaching, and inclusive process. As such, the process fosters a continual improvement mindset among Valor professionals, senior managers, and the portfolio companies that is recognized by stakeholders of the fund and portfolio company employees. Valor's comprehensive approach to building businesses and working with its partners accelerates a company's growth and value creation.