The essence of EMSA Capital is to increase value by recapitalizing the balance sheet, focusing the company on its core business, and improving its performance.
Our investments repair the liabilities-and-equity side of the balance sheet. They invariably provide some combination of new working capital and growth capital, and result in a stronger and sustainable balance sheet.
on the core
Initially, one of our key strategic objectives is to refocus the company on its core business, while stabilizing the situation and repairing relationships with various stakeholders.
Over the medium term, our performance improvement efforts are centered on achieving operational excellence, maximizing asset efficiency, and improving the company’s strategic position and growth prospects.
Based on numerous deals over the past two decades, the following steps have proved essential in establishing control, and then producing results and creating value.
- Quickly complete the investment process. Speed is of essence given a potentially fast deterioration of value. Time for due diligence, negotiation, and closing has to correspond with the circumstances.
- Take effective action. Actions are immediately taken to stabilize the situation and set the course towards the turnaround.
- Strengthen management. We quickly identify opportunities and enhance management capabilities with our team members or from our wide network of outside experts.
- Implement improvements for growth and renewal. This phase focuses on operational, financial, and strategic growth-related improvements:
- Operational: process improvement, asset optimization, product line rationalization, and selected investment to reach operational excellence
- Financial: liquidity improvement, vendor negotiation, balance sheet restructuring, and recapitalization to fix both sides of the balance sheet
- Strategic growth: selected acquisitions, organic growth, and asset repositioning to put the company on the path of long term success
Working alongside management, we create value by effectively applying our tested and successful turnaround and performance improvement methods. In the funds EMSA Capital has managed, operational improvements accounted for a large majority of the value created.