Identifying value creation levers
During the due diligence process, Harvest identifies key drivers of value creation including:
- Business strategy improvements
- Transformative acquisitions
- Operational improvements
- Management augmentations
Value Creation Blueprint (“VCB”) for success
At the outset of an investment, Harvest works closely with management to create plan for value creation which includes a business strategy, key objectives and milestones. During the course of the investment the plan is updated and modified to measure progress on key initiatives and value creation.
After closing, Harvest interacts with each portfolio company and its management extensively. This includes frequent, informal meetings and conversations as well as board meetings and other strategic planning sessions. In addition, we often provide assistance to portfolio companies for support on special projects or initiatives.
Experienced Board of Directors
For each portfolio company Harvest works with management to recruit an experienced board of directors that will provide management with strategic advice, industry perspective and access to relevant contacts. Portfolio company boards generally include three to four outside directors. These outside directors often serve as a valuable resource and / or sounding boards for management teams as they navigate the evolution of their business and industry.
Successful earnings growth
Since its inception, over half of the $3 billion of equity value created across Harvest’s realized investments was through earnings growth.
Click here to see Harvest’s investment Case Studies and related Value Creation approach.