Because of our tremendous operational experience and business model, we have been extremely successful in turnaround situation investing. No matter if the deal is a 363 sale, an out-of-court restructuring, the sponsorship of a reorganization plan, or just an investment in an underperforming company, Gage Investment Group is dedicated to partnering with the business and its management team to regain profitability and unlock value for debt and equity holders, employees, customers, and other shareholders.
For turnaround investments, we look for a few key indicators:
A compelling path to profitability
The turnaround does not need to be finished, or even in process. The restructuring process is a specialty of ours, and many of our deals are cash flow negative upon investment. All we need is a vision for success and operational improvement.
A demonstrable explanation for corporate underperformance
Instances would be deals that have fallen out, bad business decisions, industry cyclicality, over-leveraged balance sheets, and burdening legacy costs.
Revenues usually ranging from $1M to $100M
Add-on investments need only be a compelling strategic fit with an existing portfolio investment and may not fit into any of the above categories.