Marc Leder Discusses Horizon Services

Earlier this year, we made an investment in Delaware-based Horizon Services, the leading provider of residential plumbing, heating and air conditioning services for Delaware, Pennsylvania, New Jersey, Connecticut, and Maryland. The founders were looking for a partner like Sun Capital who could invest and advise in helping to grow their business more quickly and to expand their geographic footprint beyond the core Mid-Atlantic region. We were attracted to Horizon Services because it is a strong, growing company in the services sector, an area where we have a lot of experience.

We quickly recognized strong potential to help boost Horizon Services from a good company into a great one. Sun Capital is working with the management team to identify potential acquisition opportunities for other plumbing and heating providers in key regions. We recently helped Horizon with the first two acquisitions of our partnership by adding both Gold Medal Service, which operates in East Brunswick, New Jersey, and Casteel Heating & Cooling, a leading HVAC provider in Atlanta, Georgia, into the Horizon Services family. These additions have helped Horizon expand into new areas, while increasing efficiencies and reducing costs. The company is currently looking to hire additional HVAC professionals to service its rapidly growing customer base.

Other initiatives we are teaming up with management to accomplish include efforts to improve business processes, and enhance the customer experience. Our resources and in-house expertise are providing Horizon with the ability to expand their growth in the coming years, creating a win/win situation for both Horizon’s leadership and customers, and our team at Sun Capital.

Marc J. Leder, the Co-Chief Executive of Sun Capital Partners, Inc., has been engaged in leveraged buyouts, investment banking, and business operations for nearly three decades. To learn more about Marc and his storied career, click here.

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Marc Leder: Recent Accomplishments by Sun Capital Partners

Earlier this year, The M&A Advisor named Sun Capital Partners “Private Equity Firm of the Year,” and inducted me into their Private Equity Hall of Fame. While it is flattering to be included in such a renowned group of private equity leaders, the greater credit belongs to my many colleagues at Sun Capital who have put in so much hard work and dedication over the years. Private Equity Firm of the Year is a far greater achievement, and is a testament to the strength of Sun Capital’s team and culture.

Often overlooked in today’s corporate landscape, culture is critical to a firm’s long-term success. Having an organizational identity and common set of values across offices and departments allows a company to build genuine, cohesive relationships between team members, and fosters true collaboration. Businesses known for having constructive environments are the ones that succeed and have lasting impact.

At Sun Capital, we’ve built a working environment that balances perseverance and passion with integrity and fairness, accountability with decisiveness. Yes, results are important to us, as they are to any investor, but having a collaborative, team-oriented environment that values cooperation more than ego allows us to achieve great results and attract the best talent.

The M&A Advisor’s award is a great validation of what our team has built together, and reinforces that our firm is on the right path. I’m extremely grateful for the opportunity to work with such an incredible group of people, who have taken Sun Capital Partners farther than I ever dreamed possible.

Marc J. Leder leads Sun Capital Partners, Inc. as Co-Chief Executive. Under Marc’s leadership, the firm turns companies’ untapped potential by leverage deep operational and financial resources to deliver transformative results. For more on Marc and Sun Capital Partners, visit this LinkedIn page.

Marc Leder: Recent Accomplishments by Sun Capital Partners

Earlier this year, The M&A Advisor named Sun Capital Partners “Private Equity Firm of the Year,” and inducted me into their Private Equity Hall of Fame. While it is flattering to be included in such a renowned group of private equity leaders, the greater credit belongs to my many colleagues at Sun Capital who have put in so much hard work and dedication over the years. Private Equity Firm of the Year is a far greater achievement, and is a testament to the strength of Sun Capital’s team and culture.

Often overlooked in today’s corporate landscape, culture is critical to a firm’s long-term success. Having an organizational identity and common set of values across offices and departments allows a company to build genuine, cohesive relationships between team members, and fosters true collaboration. Businesses known for having constructive environments are the ones that succeed and have lasting impact.

At Sun Capital, we’ve built a working environment that balances perseverance and passion with integrity and fairness, accountability with decisiveness. Yes, results are important to us, as they are to any investor, but having a collaborative, team-oriented environment that values cooperation more than ego allows us to achieve great results and attract the best talent.

The M&A Advisor’s award is a great validation of what our team has built together, and reinforces that our firm is on the right path. I’m extremely grateful for the opportunity to work with such an incredible group of people, who have taken Sun Capital Partners farther than I ever dreamed possible.

Marc J. Leder leads Sun Capital Partners, Inc. as Co-Chief Executive. Under Marc’s leadership, the firm turns companies’ untapped potential by leveraging deep operational and financial resources to transformative results. For more on Marc and Sun Capital Partners, visit this LinkedIn page.

Marc Leder Discusses Horizon Services

Earlier this year, we made an investment in Delaware-based Horizon Services, the leading provider of residential plumbing, heating and air conditioning services for Delaware, Pennsylvania, New Jersey, Connecticut, and Maryland. The founders were looking for a partner like Sun Capital who could invest and advise in helping to grow their business more quickly and to expand their geographic footprint beyond the core Mid-Atlantic region. We were attracted to Horizon Services because it is a strong, growing company in the services sector, an area where we have a lot of experience.

We quickly recognized strong potential to help boost Horizon Services from a good company into a great one. Sun Capital is working with the management team to identify potential acquisition opportunities for other plumbing and heating providers in key regions. We recently helped Horizon with the first two acquisitions of our partnership by adding both Gold Medal Service, which operates in East Brunswick, New Jersey, and Casteel Heating & Cooling, a leading HVAC provider in Atlanta, Georgia, into the Horizon Services family. These additions have helped Horizon expand into new areas, while increasing efficiencies and reducing costs. The company is currently looking to hire additional HVAC professionals to service its rapidly growing customer base.

Other initiatives we are teaming up with management to accomplish include efforts to improve business processes, and enhance the customer experience. Our resources and in-house expertise are providing Horizon with the ability to expand their growth in the coming years, creating a win/win situation for both Horizon’s leadership and customers, and our team at Sun Capital.

Marc J. Leder, the Co-Chief Executive of Sun Capital Partners, Inc., has been engaged in leveraged buyouts, investment banking, and business operations for nearly three decades. To learn more about Marc and his storied career, click here.

Growing Brands Together

A component of being successful in private equity is developing familiarity with specific industries and business verticals. Each industry segment has its own particular customer needs, vendors, and supplier dynamics which can be learned.

At Sun Capital Partners, we are no stranger to acquisitions, and successful exits, of mattress and bedding companies. In 2007, we successfully exited Mattress Firm Holding Corp. to another well-known private equity firm.

Drawing upon our success with Mattress Firm Holding Corp. and expanding our portfolio in this sector, we acquired Sleep Innovations Inc. in 2012, followed by Dreams – a UK-based bed and mattress specialist – in 2013. We grew the Sleep Innovations business significantly through a strategic merger with Flexible Foam Products Inc. in 2014. After the merger, the company re-emerged as Innocor Inc.

Since the initial investment, we took Innocor to a category leader through operational improvements that enabled the company to capitalize on the growing demand for foam mattresses and furniture on a national scale.

Our team gave attention to the operations aspects of the business such as reducing manufacturing waste, updating the resource planning system and maximizing efficiencies of the existing manufacturing system. This empowered Innocor’s management team to focus on the areas in which they excelled – innovation and marketing to commercial audiences.

At the end of last year, we successfully sold the business. We were extremely pleased that our thesis behind the creation of Innocor meant the company realized strong growth and assumed a marketleading position across the bedding value chain.

I truly believe performance improvement is driven by partnering with strong management teams who can benefit from the expertise of our dedicated operations professionals. The Innocor story is a great illustration of how the application of Sun Capital Partners’ operational expertise can enhance the strengths of a company to build even stronger and more meaningful brands.

Marc J. Leder is the Co-Chief Executive of Sun Capital Partners, Inc., a firm focused on turning companies’ untapped potential by leveraging deep operational and financial resources to transformative results. For more on Marc and his company, click here.

Building a Platform Company

An often used strategy for building a successful, private equity-led business is the concept of building a “platform company,” into which we can merge “add-on” acquisitions to grow market share, diversify product offerings, and increase operational efficiencies. Additionally, we can expand a company’s brand reach through licensing deals, which allows us to tie into larger industry sales trends.

A great example of how these strategies can work together is our recent work with Lexington Home Brands, an industry leading manufacturer and retailer of residential furniture and home furnishings. Our other investments in the furniture and home products sector include UK sofa and carpet retailer ScS Upholstery, home furnishings retailer Furniture Factory Outlet, LLC, manufacturer of custom upholstered furniture Rowe Furniture, foam product and bedding and mattress manufacturer Innocor and bedding retailers Mattress Firm and Dreams.

But back to Lexington, when we first invested in the business in 2002, we found a firm that had been negatively impacted by foreign competition that could out-price Lexington through the availability of lower labor costs abroad. We resolved that we needed to revamp the company to adapt to these new market realities, and worked to expand the company’s portfolio of brands and increase its distribution channels.

A great way for us to accomplish these goals was to invest in licensing agreements to manufacture and distribute lines of furniture using well known designers’ names. Lexington struck a deal to manufacture an exclusive line of products under the Tommy Bahama® brand name, a well-recognized national label. Through this agreement, we were able to expand our sales through the distribution a very popular brand.

Additionally, we furthered Lexington’s expansion through the add-on acquisition of another furniture manufacturer, Sligh Furniture, a leader in the home office and home entertainment categories. By purchasing that business, we were able to greatly expand the products we offered, distribution and sales channels, and Sligh’s loyal customer base. These growth strategies were essential to developing Lexington Home Brands, which we successfully exited in January. Lexington represented a great opportunity to build a strong platform of globally-recognized furniture brands and we’re very pleased with the work our team undertook in collaboration with the company to expand the company’s market presence, profitability, and portfolio of products.

For more than 25 years, Marc J. Leder has been engaged in leveraged buyouts, investment banking, and business operations. Today, he is the Co-Chief Executive of Sun Capital Partners, Inc. For more on Marc, click here.

Business Blog –The Fundamentals Don’t Change in 2017

Image result for change 2017Image source: lifereader.com

Every election year breeds some uncertainty in the markets as people look for clues from the incoming administration and wait to see what is actually done in the first 100 days. That’s certainly true for this year as investors tread cautiously heading in to 2017.

Many people have asked me about how we see the market, how we will need to change our approach. While there are certainly a number of things that will change over the next year—and the next four— investors can and should rely on maintaining a clear view of what matters when making investment decisions: a proven approach and the fundamentals of the business.

As far as the approach, investors should resist the urge to make radical changes to what has generated their success. In our case, it is focusing on businesses where we can leverage our resources to make strong operational improvements to generate transformative results. While there may be some changes in how an investment might get financed due to more favorable or just different market conditions, that doesn’t mean we re-tool what we do.

Image result for leverageImage source: crowdstreet.com

Similarly, how we evaluate businesses does not change. Certainly, if interest rates or tax structures change significantly, the math on equity and return on investment will be adjusted, but the business fundamentals don’t vary. What is the market position? Does it have a loyal and growing customer base? Are there operational issues we can fix? Can we apply our market knowledge to bring a new perspective? Can we apply our resources to streamline costs and boost margins? These questions are relevant no matter who sits in the White House.

Executing a tried-and-true approach is what investors want to see, and what will help ensure long-term success.

Marc J. Leder, Co-Chief Executive Officer of Sun Capital Partners, Inc., has been engaged in leveraged buyouts, investment banking, and business operations for more than 25 years. Learn more about him and his work here.