The brands we acquire have become emerging leaders in their category and, with appropriate strategy and execution, are poised for continued meaningful growth. In situations where our expertise can add value, we will also invest in B2B eCommerce.
In our investments, we acquire a controlling interest in the company. Often, we are purchasing the business from the founder who has determined that while he or she was the right “idea person” to take the business from startup to meaningful revenue, they desire assistance to optimize the next phase of growth.
These founders can benefit by partnering with someone who understands the brand and can augment the growth opportunity. The partners at Altacrest have significant experience in building companies and implementing processes that have created sustainable value for other consumer brands.
Frequently as part of the transaction, the founder continues to participate in the next stage of growth by retaining ownership. It is not uncommon for the founder to retain a 15-30% ownership stake in the business post-transaction. This continued ownership aligns interests between Altacrest and the founder and allows the founder a second opportunity to generate wealth via the growth of the business.
We invest in companies that are profitable
Before beginning a new partnership, it is imperative that Altacrest and the founder have a clear understanding of the founder’s (or incumbent management team’s) desired role going forward. We welcome situations where the founder wants to remain the primary driver of the business and maintain ultimate responsibility for growing the company. In other instances, the founder prefers that a new management team is brought in to drive future growth. We are also comfortable with that approach. As we are usually the first outside investors in a company, we partner with founders and management teams to navigate the preferred transition carefully.
Whether we are working with the founder or a newly recruited CEO, we look to leverage the benefits of the Altacrest Ecosystem. We utilize a hands-on approach. Beyond capital, we provide real world experience building brands. We collaborate with founders and management teams to grow the business together, be it through enhanced omnichannel digital marketing (eg, Amazon, Shopify, Google Ads, other dot coms, etc.), improved back end systems, channel expansion, or product development or line extensions, including reliable management connections in Asia. We help our portfolio companies achieve their full potential by leveraging relationships, building teams, and implementing best practices in these areas.
Our primary job is to create an operating and financial environment for management to freely pursue intelligent opportunities that will benefit our companies in the long run. We are not driven by short term decisions, instead focusing on building sustainable value.