Emerging managers, independent sponsors and family offices often don't have sufficient active operating partner resources.  Funds expanding downstream may be in-process of scaling up their LMM expertise.  In most cases, outside investors underestimate the time and effort needed to accelerate small business.  Likewise, operators overestimate the stability, agility and trajectories of their organizations.    

​

Lower middle market businesses are quirky.  

 

Call it opportunity, call it risk, quirky is hard to forecast. Lower multiples tease buyer confidence and deal processes are dream worlds.  Eventually, quirky emerges and reminds everyone that small businesses are small for a reason.  

 

Inertia is fierce.

​

Sometimes a surprise seems manageable at the start.  Often, though, the gap between pre-close perception and post-close reality creeps wider.  Tensions rise and partnerships deteriorate.  There is little buffer for shock, much less a crisis or pandemic. 

 

Opportunity costs of managing quirky grow, under the radar. 

​

It is time for a catalyst.  A fresh and objective point of view.  Brains and brawn to re-set and align.  Sweat equity to thrive.

 

Scout Capital is the back pocket solution, a low-to-no fixed cost independent operating partner to bridge the gaps in vision, strategy and execution between investors and operators.