CoBe Capital delivers M&A solutions to meet the specific needs of corporate sellers looking to divest non-core and underperforming business units.

Our criteria for investments are (1) divestiture by a parent company, (2) sale decision based on the strategic decision that a business is non-core, (3) revenues of $150 million or less, (4) history of operating losses or challenging competitive environment and (5) an operating strategy to revitalize the business led by our industry specialists.  

Having brought business development, M&A, transition, legal, real estate, finance and operations in-house, CoBe Capital is able to complete transactions swiftly and seamlessly, and deliver unique solutions to complex issues.

Corporate Sellers

A corporate seller may have several objectives in completing a transaction. We carefully listen to these objectives, and tailor each transaction to meet all the objectives of the corporate seller, which typically may include:

• A quick transaction
• Minimal disruption to operations and employees
• Sensitivity to local customs and practices in international regions
• The need for an ongoing, lasting business relationship
• Confidentiality
• Certainty of closing

Our team has experience resolving the most challenging and complex issues of a divestiture. We engage our financial, human resources and legal teams to solve complex issues surrounding:

• Incomplete or minimal information
• Information in foreign languages
• Considerable intercompany operations with the seller
• Off-balance-sheet liabilities
• Employee continuity or severance
• Labor issues
• Real estate, lease, or environmental issues
• Preserving or transferring brand equity

Certainty of Close

We don’t want to be surprised, and we don’t want the seller to be surprised. For each transaction, our team creates and submits to the seller:

• A Letter of Intent which is customized and detailed to meet the needs and objectives
  of the corporate seller, and provides a roadmap for the parties to complete the transaction
• A diligence item checklist for quickly organizing and completing diligence data
• A transaction timeline with key goals
• A human resources plan for the transaction
• A list of the key CoBe Capital personnel whom the seller may call upon for financial,
  human resources, environmental, legal, or other assistance with the transaction
• A short-term Transition Services Agreement for services provided by the seller
• Any type of ongoing business plan details and assuredness which
  incorporate the specific desires of the seller
• Where desired, any long-term business agreements or partnerships with the seller

For each acquired entity, our team creates:

• A transition plan which details all the elements of the transaction and ensures
  a smooth transition away from the seller’s operations
• A business plan which drives toward continuity and financial success of
  the acquired entity, and mitigates risk of post-transaction issues

Protecting Seller’s Interests

A corporate seller has additional requirements when contemplating a divestiture, even if a business is non-core to the parent’s go-forward strategy. The overlapping customers, vendors in supply chain, joint marketing need and parent company’s brand reputation are all at stake during and after a divestiture. CoBe Capital is committed to meeting and exceeding the seller’s expectations. We understand that our success depends on well-executed business operations post-close. This is our best solution to protecting the seller’s vital interests.

International Expertise

CoBe Capital and its principals have completed international transactions for over a decade and are aware of the sensitivity in many foreign countries to include the workforce, the local community and the local government in the participation of the transaction and operation of the company going forward. Our multi-lingual teams in the USA and Europe have significant experience in restructurings, human resource and work-council issues and legal and financial requirements internationally.

We strive to conduct the transaction with the least disruption to the local community and with the highest level of integrity.

Operational Excellence

CoBe Capital prides itself in the operational excellence it has developed in each of its portfolio companies. CoBe Capital’s disciplines include implementation of Lean Manufacturing, JIT, TQM, ISO-9001/9002 and Six Sigma. These tools help translate our business plans into a guide to measure how well we execute everyday activities and create options for doing even better.

CoBe Capital companies are committed to maintaining the highest standards in corporate governance, financial controls, compensation guidelines, labor practices and environmental safeguards.

Purchaser Philosophy

With a permanent capital base and a firm mandate to acquire and hold, we intend to hold our portfolio companies as long-term investments. As purchasers, we implement operational and managerial improvements to enhance a business and make it a world-class performer.

Role of Current Management and Employees

We intend to provide nurturing, coaching leadership which focuses on problem solving and to create an environment which will give employees maximum participation in the operation of the company, and provide financial rewards and incentives for achieving goals.