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23120 Alicia Parkway, Suite 200, Mission Viejo, CA 92692

Private Equity

INVESTMENTS

“TCDG Capital Partners invests equity capital in middle market Food Industry related companies and maximizes shareholder value through proactive business and strategic involvement.”

The funds raised through private equity can be used to develop new products and technologies, to expand working capital, to make acquisitions, to strengthen a company's balance sheet, or to simply create liquidity for the shareholders.

PARTNERING WITH TCDG CAPITAL PARTNERS

TCDG Capital Partners, a unit of The Corporate Development Group, is a private equity investment partnership dedicated to investing in the food industry. The group is comprised of food industry executives, with operating, marketing, and finance experience. Our emphasis is on improving the operating performance of companies by enhancing growth and profitability. The group’s unique focus and ability to contribute both seasoned operating experience and growth capital results into higher returns for our partner companies.

Investment Philosophy
  • TCDG Capital Partners focuses on investing in underperforming and troubled as well as performing middle market food companies. The group then applies its operating expertise and financial restructuring skills to create value.
  • The mere size of a company is not a driving force behind our investment consideration. TCDG Capital Partners has extensive experience with rapidly developing middle market businesses, as well as with larger companies. We focus on quality and potential, not size. Having said this, TCDG Capital Partners doesn’t invest in start-ups or early stage companies.
  • TCDG Capital Partners also acquires subsidiaries, divisions, and product lines from large companies. Our understanding of the food industry and market experience enables the group to focus on an operation which may not be strategically significant to the existing parent company.
Unique Operating Strategy

TCDG Capital Partners assists in the development and execution of the following activities which are drivers of value creation and the precursors to successful growth:

  • Develop a thorough repositioning and operating plan prior to making the investment:
        * Develop short, medium, and long term strategic plans focused on achieving a presubscribed growth strategy
        * Conduct competitive, core competency, and SWOT analysis
        * Develop a comprehensive sales and financial forecast in order to accurately set goals, monitor performance, and identify improvement areas
        * Develop plans for manufacturing optimization and supply chain efficiency
  • Maintain active involvement in operations to insure repositioning initiatives are carried out by executing the following:
        * Cost reduction strategies and implementation
        * Manufacturing and distribution efficiency optimization
        * Marketing strategies and implementation
        * Product line extension / reduction where appropriate
        * Negotiate low cost providers in company expense area such as insurance, professional services, freight
        * Emphasize working capital management including receivable collection, inventory control, and trade financing
  • Execute corporate growth activities:
        * Provide corporate finance assistance for capital structure optimization
        * Conduct corporate alliance for internal growth
        * Carryout strategic acquisitions for external growth
  • Build a superior management team; often with members of the existing team:
        * Support management for restructuring initiatives
        * Attract seasoned managers to improve company’s level of depth of competency
        * Introduce professionals with relevant expertise to resolve problem areas
Investment Criteria
Revenue: $10 to $100 million
Investment: $2 to $20 million
Geography: Primary-western U.S., Secondary-remaining U.S.
Businesses:
Primary
• Food processors and Distributors
Secondary
• Multi-unit restaurant chains
• Food packaging/container manufacturers
• Food processing equipment manufacturers
Value Added

TCDG Capital Partners is not a passive investor. As former operating executives, investment bankers, and management consultants we provide partner companies significant analytical, strategic, financial, and operational support. TCDG Capital Partners does not attempt to run the businesses; we proactively work with management to facilitate growth and success. The group’s working knowledge of operations, marketing, distribution, and finance makes us a preferred partner with management, particularly for underperforming and troubled companies. The extensive experience TCDG Capital Partners brings in has allowed the underperforming companies to quickly gain a competitive advantage through both new areas of business and access to additional capital. In addition to investing in platform companies, TCDG Capital Partners invariably targets acquisitions of other strategic companies which when consolidated into existing investments create larger economy of scale and profits.

CASE STUDY
  • Situation: A 25 year old, $30 million in revenues, underperforming, absentee owner cheese manufacturer wanted to sell.
  • Problem: The company was suffering from high commodity prices, customer concentration, declining product quality, and low morale.
  • Solution: Along with a strategic investor, we acquired the company. We provided interim CEO management, greatly improved morale, renegotiated commodity contracts, developed new products, and reduced the customer concentration. These activities created a stronger competitive position for the company.
  • Benefit: Within two years we sold the company at a substantial value (>8 times EBITDA) to a key commodity supplier, who wanted to do vertical integration.

“By working together, pooling our resources and building on our strengths, we can accomplish great things.”

-Ronald Reagan

Types of Transactions

Recapitalization: Purchase of equity from the existing shareholders allowing them to free up capital for themselves and for diversification.

Family Succession: Purchase of equity from those family members who seek liquidity.

Growth Capital: Purchase of a minority equity interest in a company so the company can execute a well-defined growth plan.

Industry Consolidation: Back senior management by investing acquisition capital for consolidation of fragmented sectors of the food industry.

Management Buyout: Partnership with an existing management team to purchase controlling equity interest in the company.

Buyouts of Closely-Held Companies: Purchase of a controlling equity interest in a company whose stock is held by a limited number of shareholders.