Selection Criteria
At MBTH, our philosophy is to first identify firms that are already generating sales and positive cash flow, though we will make exceptions in selected special situations. We seek companies that are already demonstrating a propensity from strong management, with the goal of minimizing our direct involvement in the daily management of the companies. We may take on director roles, though that is not typically emphasized and, and in general would only be for a short or transition period.  Our overarching goal (and preferred engagement) is to maintain the independence of the companies while taking on a shareholder role.

We seek out companies for which we can deliver immediate value – be it advice on cost cuts and similar approaches to improve cash flow, crossover with other MBTH portfolio companies, or bringing our financial know-how to the table, including best strategies and structural refinements for the long-term.

Long-term, we would seek to take the best qualified portfolio companies public, and would provide significant incentives to management to prepare them for that transition.

The Key Difference: The MBTH Approach
One of the key ways in which the MBTH approach differs from that of private equity and traditional investment companies is our focus on building our holding company though our portfolio companies for the long term. As such, our model is that we will seek to hold some or all of our position – at least a sizeable stake in the companies we invest in. This is in contrast to the short term mentality prevalent in most investment philosophies.

Partnering for the Long Term
Once companies go public, it is inevitable that some will run into occasional issues and obstacles. If we believe the long-term opportunity and viability remains intact and the short-term problems are fixable, we will in fact offer to increase our stake as a show of ongoing belief in, and support of, the viability of the business as an investment opportunity.

There will be instances where some qualified management from portfolio companies will become available or may choose to replicate the process with another portfolio company.  We plan to develop a “bench” of these managers and/or partners in the future that can deployed on an “as-needed” basis.