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Any investment opportunity is underpinned by rigorous due diligence, industry analysis, and an intensely analytical focus on value. We believe that this disciplined, value-oriented approach serves investors well, even in an environment which may have flat or contracting valuation multiples over the holding period of an investment. We proactively target companies with defensible business models, strong industry positions, and best-in-class management teams.

Crossover’s comprehensive due diligence process includes assessments of a company’s management team, market and financial position, prospects for growth, and corporate governance. Our investment professionals spend a significant amount of time with senior managers to understand fully the opportunities and risks of a business and their vision for the company going forward. We visit offices and other facilities to review the business with executives, managers, and key people responsible for the critical success factors of the business. Additionally, we interact with customers, suppliers, and industry experts. This approach to due diligence reflects our conviction that long-term value creation is the consequence of an investment thesis based on detailed industry and operational knowledge.

When an investment team concludes that a business is worthy of serious consideration, the opportunity is presented to the firm’s Investment Committee consisting of the firm’s most experienced investment professionals, industry consultants, and special advisors. Consultants and Special Advisors often assist the Investment Committee by providing an additional assessment of a particular company and the competitive dynamics of the market in which it operates. Upon completion of the due diligence, we discuss the broad terms of investment with the company, and sign a term sheet summarizing the principal terms of the investment.

Once the investment has been made,
Crossover professionals take an active role in monitoring and supporting enhancement of equity value for its investments. In recognition of the importance of initiating and supporting post-acquisition programs to enhance value, Crossover has a dedicated team responsible for monitoring the strategic, operational, and financial performance of its portfolio investments. This consists of working with the management team to devise a 100-day plan for the company that sets forth the steps necessary to achieve immediate goals. Six months after a transaction closes, the deal team presents a progress report as well as review plans for the rest of the year with the management team of the company. This proactive approach enables us to determine the optimum timing and structure for exiting an investment which may take anywhere from three to four years. Simultaneously, we engage with consulting firms to develop a balanced scorecard of our portfolio companies, and with the investment banking community to assess favorable exit strategies.