Increasing revenues. Reducing costs.
Increased Revenues: As Skyview and its management partners grow a company through acquisition, management often generates accelerated internal growth. This rapid growth can be attributed to a number of actions:
- Cross-selling of products and services
- Adding of national or regional customer accounts
- Improving sales and marketing capabilities
Reduced Costs: As Skyview and its management partners grow a company through acquisition, management often improves margins by operating more cost-effectively. Typical cost saving opportunities arise from:
- Increased purchasing power
- Scale economies in back-office functions
- Improved utilization of labor and assets
- “Best practice” implementation across similar operations
- Better information from integrated MIS systems
Through the consolidation process, Skyview creates larger companies which tend to be more visible and more attractive to potential public and private buyers. Skyview's portfolio companies are often able to access public markets which are unavailable to smaller companies. For investors in public securities, larger companies fit the screening criteria of a wider universe of potential investors and provide greater liquidity in the market. For strategic buyers, the acquisition of a larger company allows them to enter new geographic markets and/or service areas in a shorter time frame, at lower risk and with greater impact than could be achieved by acquiring a series of smaller companies.
Skyview strives to build companies that have substantial strategic value to prospective acquirers. Skyview and the management team work to ensure that the business composition evolves to improve the strategic attractiveness of the company. This often involves taking advantage of growth opportunities to transform the company into a more attractive acquisition or IPO candidate.
