Consumer Growth Partners

Consumer Growth Partners was formed in 2005 by three partners with decades of experience adding value to retail and consumer companies.  Our experience came through private equity investing, public company equity research analysis and operating assignments.  Over the years we have had the opportunity to work with many of the best companies in our sector, and as a result our network includes hundreds of the best executives, intermediaries, service providers and investors in our sector.

We do three things:

1. We buy companies with investment partners and support both the General Partners and the company management in being successful.
2. We help investment partners improve a company’s performance during the investment horizon when a portfolio company is failing to meet expectations.
3. We help owner managers improve performance so they can build value and maximize value at a future liquidity event.

Our scope of work normally covers three phases:

1. Assess Operations: We know the Retail and Consumer sectors so well that we can compare your company to sector best practices/models and identify opportunities for improvement.  We can determine whether underperformance is due to flaws in strategy, management execution and/or external factors.
2. Improve Performance: We know the performance characteristics of great companies and how to measure them.  We work with your company to adopt and measure these performance factors.  If management changes will help, we know how and where to find proven managers.
3. Exit Investment: Once improvements have been implemented and the value of your company has increased, CGP will work closely with you to facilitate a liquidity event that will maximize return on investment.

We work closely with three constituencies:

1. Private Equity Firms/Institutional Investors: We work with private equity firms and institutional investors to help them complete new investments and/or to optimize the value of current portfolio companies.  For new investments, private equity firms/institutional investors may lack the in-depth domain expertise to confidently pursue opportunities in the retail and consumer products sectors despite a history, interest or willingness to invest.  When investors evaluate opportunities in one of our sectors, CGP can be engaged to provide in-depth domain expertise and transaction support.  We utilize our own expertise as well as that of our extensive resource network to assist our partner throughout the life of the investment. We also work with investors on their current portfolio companies that may not be meeting performance expectations.  We have the experience and expertise to analyze why performance is falling short and to recommend how to improve performance.  Often management resources must be added for the company to achieve performance targets.  We have an excellent network available to help assess and identify management talent. We also have relationships with strategic investors who may be either potential customers or acquirers of the company.
2. Intermediaries: The majority of our engagements come through intermediaries who represent owners/management teams.  Consumer Growth Partners welcomes the opportunity to work on an assignment for a traditional buyout or growth transaction in our sector. In addition, CGP can be helpful in assisting the intermediary (or company) in preparation for a formal transaction even though the timing may be premature given the company’s size, inconsistent performance, infrastructure limitations, current valuation, etc. In partnership with the intermediary, CGP can work with a company to make it transaction-ready and then return it to the intermediary when a transaction can be efficiently completed.
3. Owners/Management Teams: Often owners/management teams have opportunities to increase the value of their business, but may be reluctant to pursue them.  This is primarily driven by a lack of access to appropriate human and/or capital resources and a lack of knowledge about how to navigate through the sea of available resources. CGP can assist owners/management teams by working with them to achieve best practices and an optimal liquidity event over a targeted time frame.  Our approach begins with an assessment of the current operations of the company and is followed by working with owners/management teams to identify the improvements most likely to increase the value of the business to prospective buyers/investors.  With this roadmap, owners/management teams can focus on value creation knowing they have a plan and a partner who will help them consummate a liquidity event in a way and at a time that maximizes value.