Home > Exit Strategy

Exit Strategy

Our preference is to hold companies for approximately 7 years. We believe that long term value creation takes time and that “flipping” investments does not generate a long term sustainable business model.

We are willing to make add on investments where the whole is more valuable than the sum of the parts.

Two exit examples:

• In the past year, we implemented the retirement of all the institutional equity from one of our companies, allowing management to increase its stake to over 50% of the company.
• Specialty Brands of America (SBA) is the leading provider of specialty syrups in the U.S. The company has a 35% market share of the pure maple syrup, which makes it the largest supplier in the world, as well as a 55% share of the sugar free syrup market. The company specializes in the distribution of non-refrigerated packaged food brands through a nationwide network of distributors, brokers, food-service vendors, and direct to supermarket sales. 
  
  CVFG provided the equity capital for this startup, and worked with management to target and finance all subsequent acquisitions. SBA's acquisitions include: Original Trenton Crackers, a 150 year old marketer of specialty crackers; Dixie Fry, a 50 year old marketer of specialty breading and coating products; New York Flatbreads, a marketer of specialty crackers and snacks; Cary's Sugar Free, a market leading sugar free syrup; Pure Maple, a maple syrup, formerly owned by Borden; and Springtree maple syrup.
  
  The company has an outstanding management team capable of managing a billion dollar company, well beyond the range of CVFG. Accordingly the company was sold in a $68 million transaction to a financial buyer wishing to fund a substantial expansion. For more details click here: American Capital Announcement.