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The ideal candidates for S3 investment are companies that are
well-established (not start-up), but under-performing for
any number of reasons that can be cured in the short term (within
one to two years) by the infusion of capital from S3. Some reasons
for a focused investment might include:
- Need to reduce high interest-bearing debt, such as factoring
- Need to rebalance a schedule of debt maturities
- Need to automate processes, install more efficient equipment or
relocate plant facilities
- Need to augment management by recruiting senior managers
- Need to invest in marketing, distribution channels or sales
force development
- Need to consummate a strategic acquisition (e.g., a competitor,
supplier or customer)
The size of an S3 investment will typically range from $500,000 to
$2,000,000 and co-investors are welcomed. S3 investments are intended
to be interim, curative and remedial, and NOT permanent equity. The
purpose is to correct a limited number of specific problems that
underlie the cause for company underperformance.
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