Our Approach towards Value Creation
The GEX Value Enhancement (G.V.E) Framework is a value-centric operational framework that is highly responsive to the unique needs of each portfolio company while maximizing total shareholder return (TSR). This approach allows our strategic teams to partner with our portfolio business management teams to develop operating budget solutions, build out revenue and growth pipeline, identify working capital strategies and implement IT solution structures that enhance overall value for our platform businesses.
The core value proposition of the G.V.E Framework applies to the following three areas
Value Focused Strategic Capital Deployment
A key component of G.V.E is to emphasize value focused returns as a critical factor in developing the overall portfolio investment thesis. The GEX Capital investment team partners with management and board members to transform strategies related to enterprise mergers & acquisitions, buy and build processes, business transitions and carve-out structures into detailed plans to be executed over the life on an investment with an end goal of achieving attractive returns to investors and ensuring long term value creation for the businesses we invest in.
Operational Excellence
GEX Capital works closely with its portfolio management teams to develop operational rationalization strategies post investment. This includes developing corporate governance processes, vendor and customer relationship management thesis, identifying and implementing business process improvement methodologies, managing supplier and customer relationship processes, execution of 30-60-90 day plans, develop cost reduction and capital investment optimization processes, and other methods resulting in optimization of the capital structure.
Transformative Human Capital Management
As part of its onboarding due diligence, GEX Capital performs management diligence and, if needed, recruits managers during transition process related to M&A activities. Furthermore, we align incentives with operating management through performance-based compensation including annual incentive and equity plans. GEX Capital will also supplement portfolio companies’ management or boards by focusing on specific value creation drivers by building deep, hands-on relationships with portfolio companies that includes collaboration, transparency, and communication, supplemented by clear governance and reporting guidelines.