Diversification
At Calpe Group, we believe strategic diversification across industries offers superior returns regardless of economic cycles. Our due diligence efforts are conducted by Calpe Group’s internal analysts with outside assistance from expert consultants as needed. All significant aspects of potential acquisition are examined thoroughly, where we concentrate on the targeted company’s industry, strategy, outlook for growth, as well as possible exit strategies.
Special Situations
Generally, we target control positions of companies that are distressed or where value can be unlocked as a result of a one-time opportunity such as, but not limited to, the following:
- Change of government regulations
- Industry trends
- Change-of-control transactions cashing out retiring founders or corporate owners
We also pursue transactions involving distressed debt. Minority positions and growth equity opportunities are considered through an independent evaluation process.
Partnering with Management
Calpe Group familiarizes with managing operations of its portfolio companies and supports management with developing acquisition benefits associated with cost reduction and revenue enhancement initiatives. We generally appoint a member of Calpe Group, or where appropriate, outside industry experts to the executive staff of acquired companies. Our goal is to work with existing management teams to create additional value by reducing costs, expanding product offerings, improving capital structures and taking advantage of capital market opportunities.
Real Estate
In addition to core business, Calpe Group is active in the commercial real estate arena. Typically, we look for parcels, with or without improvements, in urban areas of growth. Income producing property is preferable, but we also look at possible development opportunities.