Rationale: Strong operator running a solidly profitable company with revenues of $18 million that didn’t require material capital spending to grow, and had a culture of profitability. In addition, interests were aligned from the start with the operating partner, he owned more equity than the fund and wanted a new shareholder partner to become an active financial partner to assist with strategy, growth and building a team. We recognized a kindred spirit who wanted to work together to build value.
Accomplishments: Between 2005 and 2007 Etratech acquired and successfully integrated a complementary electronics components business in China. Quality certifications were obtained in the following years. The engineering team consistently solved customer problems leading to the successful introduction of new products into new markets. The success of the partnership was based on working with the team to prioritize their ideas and bring structure and discipline to the action plans.