Investment and Operational Philosophy

Deal Sourcing & Screening

Empeiria focuses on businesses that meet stringent investment criteria developed by its principals over the past three decades.
  • Empeiria targets “turn-up” situations – companies operating below their full potential – that present multiple opportunities to increase cash flow and earnings through operational improvements and/or strategic initiatives.
  • We further target companies that: (i) produce a high return on capital employed; (ii) demonstrate market leadership with barriers to entry derived from embedded technology, brand value or customer relationships; and (iii) operate within a fragmented industry, providing an opportunity to accelerate growth and competitive advantage through a consolidation strategy.
  • We typically avoid companies with excessive customer or supplier concentration.

We generally focus on acquiring companies with EBITDA ranging from $5 million to $20 million.

Value Creation Philosophy

Empeiria's plan for value creation in "turn-up" situations typically involves some or all of the following elements:
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Revenue enhancement:
  • Product line expansion
  • New distribution channels
  • New geographic markets
  • Add-on acquisitions

Operating efficiencies:
  • Cost reductions
  • Working capital improvements
  • Capital spending efficiency
  • New technologies
  • Outsourcing

Strategic repositioning:
  • Divesting non-core assets
  • Rationalizing facilities
  • Upgrading management
  • Implementing incentive-based compensation plans
In the Empeiria team’s realized buyout investments, aggregate EBITDA expanded by an average of approximately 50% between the times of acquisition and exit