It happens again and again. A great company with loyal customers who loved its products and services is in danger of becoming bankrupt due to mismanagement or internal conflict. This breaks the heart of Marc J Leder, the Co-Chief Executive Officer of Sun Capital Partners Inc., a global private equity firm. It is because of this very reason that he and partner Rodger Krouse now scour the globe to look for struggling companies with great potential. The two CEOs established Sun Capital Partners Inc. in 1995 right after Marc J Leder left his Senior Vice President position in Lehman Brothers and moved to Boca Raton, Florida. “It’s incredibly rewarding to come in and provide the necessary capital and human resources to transform potential into results,” Marc Leder said. “Sometimes our work saves companies and jobs that might otherwise have gone away because the business became uncompetitive.”
Take A Peek at Sun Capital Partners Inc.’s Portfolio
Sun Capital Partner Inc. has put capital into more than 330 companies since its inception in 1995. One of its successful bets is Franchise Restaurant Concepts, the biggest franchisee of Hu Hot Mongolian Grill restaurants which specializes in create-your-own Asian stir-fry. Headquartered in Omaha, Nebraska, Franchise Restaurant Concepts manages 21 Hu Hot restaurants in the Midwest. Another company, ScS Upholstery, is located in Sunderland, UK and manages 96 outlets for distributing and selling sofas in the middle market upholstery retail sector. It now has 11 distribution centers to provide affordable products and great service. The Gem Shopping Network is a unique 24 hour live TV network for the sales of colored gemstones and jewelry. Its loyal customers keep themselves up to date by catching the show on satellite, cable and internet.
How Sun Capital Partners Inc. Vets Possible Target Companies
Sun Capital Partners Inc. is not picky when it comes to which companies to help. In truth, the firm has put capital in various companies in industrial, retail, paper and packaging, consumer products and restaurant industries. Marc J Leder highlights that one of the most important things he looks for in a possible target company is great corporate culture. “After a large number of portfolio companies underwent a cultural study, we found that culture was an excellent predictor of performance over time,” Marc Leder said. “It’s not intangible,” he added, “Our approach has been rooted in measuring four attributes: adaptability, mission, involvement and consistency. Specifically, ‘involvement’ has the strongest correlation with performance. By ‘involvement’ we mean team orientation, empowerment and capability development.” The global equity firm also looks for companies that already have a management team that is ready to cooperate with Sun Capital Partners Inc. After all, the management team possesses all the important knowledge and experience pertinent to the company’s success. Lastly, Marc J Leder also puts his faith in companies that are market leaders in their industries and have loyal customers. These two criteria often make a strong foundation that can make the difference between success and bankruptcy.