In Sport and business, the world is continually searching for the next big thing. The initiative or secret sauce (aka competitive advantage) that will enable the Gold Medal at the Olympics or successive years of outsized returns for shareholders. The search is often elusive in Athletes and Companies because they skip the basics to focus on the big thing. (i.e. think big weights at the gym vs. developing a strong core).
Where we add value is in the “business of business”. One reason we buy into a business is that we believe they are excellent at their point of difference. They don’t need guys in chinos suggesting radical changes based on unrelated experience. However, there are some aspects of running a business that are universal across all great businesses. Within Redwood North, we have developed a playbook for our first 12 months of ownership that guides our work with the teams to create a strong foundation.
We would like to start a conversation around what those elements are and how we at Redwood North apply them to our portfolio companies. Our approach is equally applicable for business owners who are considering selling their business, as it is for those that want to strengthen the foundation of their business. Our desire is that we all grow together.
About Redwood North
Redwood North is an Australian private equity firm investing in small-medium enterprises focussed on non-discretionary products or services. They seek to partner for growth, with founders and management teams in established businesses with annual pre-tax earnings between $1m to $5m.