Attracting Strong Management
Quantum believes that each company should be run by the best professional managers available – individuals whose full time and attention are focused on creating value from a given business. In most situations, strong operating management comes with the acquisition and is a principal reason for Quantum’s interest in the investment. However, if it becomes necessary to supplement management, Quantum can draw on a large stable of proven successful business leaders of the highest caliber management experience in the targeted sector and operational strategy.
Management and Employee Incentivization
In addition to attracting talented executives, Quantum structures management incentives and compensation plans that align the interests of management and shareholders. A requirement for all managers of Quantum companies is that they make a significant personal financial investment in their businesses, sharing directly in both the rewards and risks of equity ownership. Where management feels it makes sense, Quantum strives to extend incentives as deeply as possible throughout its portfolio companies’ employee base.
Pursuing Acquisitions and Divestitures
Quantum’s portfolio companies have been opportunistic in both buying and selling businesses. Quantum has served as an important catalyst, offering an array of contacts as well as its own experience in negotiating, executing, and financing transactions. The acquisitions and dispositions of Quantum portfolio companies have enabled these organizations to expand and solidify market positions, better focus their businesses, and increase their financial and operational flexibility.
Helping Portfolio Companies Arrange Financings
Quantum continually seeks to optimize the capital structure of each portfolio company to reflect management’s operational strategy and take advantage of opportunities in the capital markets, while minimizing the cost of funds and maximizing financial flexibility.
Providing Effective Oversight
The core oversight role that Quantum plays on a day-to-day basis through its position on the Boards of Directors of its portfolio companies is vitally important. Quantum works closely with each management team to put into place a rigorous infrastructure and monitor corporate results on a consistent and continual basis. Quantum’s objective is to instill a discipline that translates into predictable and superior performance. Quantum is involved in and knowledgeable about all aspects of a company’s business, continually reviewing budgets and providing input on broader strategic planning efforts and detailed financial forecasts. An important focus for Quantum is cash management. Quantum plays a central role in helping portfolio companies determine how they can operate most efficiently and best find and channel resources to serve specific strategic objectives. Over the course of an investment, difficult situations may arise. Quantum’s willingness to face such situations head-on and play an active role in their resolution often preserves value and the long-term valuation of the company.
Maximizing Value When Exiting Investments
Quantum seeks to maximize the value of its portfolio companies and achieve long term ‘out-performance’ for its shareholders based on flawless execution of proven investment and operating strategies. Although the firm may be opportunistic in taking advantage of periodic financial market arbitrage, it generally seeks to realize value through carefully selecting the timing and method of portfolio liquidity events.