Investment Approach
Partnering with Lower-Middle Market Industrial Companies
A Trusted Investor
We have a history of partnering with first time business sellers who want to transition their business to a knowledgeable partner who can be trusted to carry on the founder’s legacy. Our focused industry expertise informs every aspect of our investment strategy.
Experienced, Patient and Pragmatic Investors
Since our inception, our focus has been to seek investments in lower middle market industrial businesses. We believe there is no substitute for the experience that comes from successfully investing in industrial businesses through varying economic cycles for over two decades. It is this experience that forms the backbone of the firm’s expertise and positions us to understand the needs of the companies and management teams that we support.
At CW Industrial Partners, we look past the typical five-year horizon to build businesses that can thrive well beyond our investment. CW industrial Partners concentrates on driving profitable and sustained growth, which benefits management, employees, customers and ultimately our investors. We align early with management, agree on a plan,then provide the resources and guidance to help management execute. In our experience, working as a partnership – serving management, not directing them, yields the best results for everyone involved. We help by bringing our knowledge, resources and ideas to the table while the management team holds the reins.
Investment Criteria
$3M-$12M
$20M-$100M
$15M-$100M
US + Canada
Partners in Growth
CW Industrial Partners Value Realization System
Our CW Value Realization System (“CW VRS”) is designed to support the improvement process at our portfolio companies. Over the years, CW Industrial Partners along with our Industry Advisor Network™ have developed a set of best practices, templates and measurements help our portfolio companies reduce variation and improve performance. Applied in moderation, at the right time, CW VRS helps our managers improve performance and reduce variation across four functional areas:
Operations: Institute Lean Manufacturing
• Quality, safety, standard work
• Shop floor optimization (cellular manufacturing, flow)
• Visuals and performance boards
• Cost savings, outsourcing and automation opportunities
• Inventory management
• KPI metrics 5S organization
Commercial: Salesforce Effectiveness
• Build and manage sales strategy (pipeline management, goals, targets)
• Restructure incentive plans (hunter mentality)
• End market diversification, Pricing
• Voice of customer
• Website optimization (SEO)
Financial: Financial Stand-Up
• Install or improve systems to run the business using data (ERP, BI)
• Enhance cash flow and financial reporting
• Build leading indicators for real time performance tracking
• Working capital management
• Supply chain improvement (supplier quality, terms)
• Customer and product profitability
Management and Value Creation Strategy
• Establish a five-year strategic plan and work with management on strategy deployment to drive initiatives
• Provide management training to develop strong leaders
• Fill in management team gaps
• Incentivize and align management teams to think like owners
• Create advisory board and expert network to support management
Sector Focus
CW Industrial Partners is focused on sectors that have common business and manufacturing processes where we can add value. We provide access to a sophisticated network of industry advisors and our CW Value Realization System that helps our managers accelerate their strategic plan. We focus on six industrial sectors in the lower middle-market:
