Conservative Capital Structures / Senior-Only Debt
Trivest puts the Company and its employees first when it approaches deal structure. It is critically important that the Company has the flexibility to operate post-closing and isn’t constrained by its debt burden. To that end, we close our transactions using significantly less leverage and more equity than our competitors. We average 50% equity contribution in our deals, use only senior debt and typically close at 3x or less total debt to EBITDA. This provides a large measure of safety regardless of what happens to the economy going forward.
Maintaining the Company’s Culture
Trivest endeavors to maintain the culture that a founder has worked tirelessly to build. We strongly believe that a Company’s culture is a key determinate of success and are very careful to avoid disruptions post-closing.
Providing Equity Ownership for Employees
Trivest believes in aligning our interests with those of the management team at each company. As such, rather than offering stock options that are less tangible for managers and more challenging for them to value and appreciate, we facilitate ways to get shares of stock in their hands day one.
Providing Management the Flexibility to Operate
We do not use an operating partner model, meaning that Trivest employees do not “parachute” into our companies post-closing to run operations. We feel that this can create disruptions and impact the culture of the company. Rather, we serve as active board members, and provide our management teams with the flexibility to operate.
The Trivest Motto: “If it Isn’t Broken, Don’t Fix It”
Trivest invests in well run, profitable founder and family-owned businesses. The founder(s) and their management teams have dedicated significant time creating a highly successful business. It is Trivest’s responsibility to shepherd the Company through its next stage of growth and development while leaving the founder’s legacy in place.