Skyward Equity Partners: Our Investment Strategy Unveiled

By Skyward Equity Partners
In a world that is constantly evolving, the Canadian industrial sector remains a cornerstone of economic stability and growth. Recognizing this, Skyward Equity Partners, launched in November 2022, has strategically positioned itself to unlock the untapped potential, specifically within the lower-mid-market niche industrial sector. Our approach is not just about acquiring assets; it is about building value, enhancing operational efficiency, and empowering leadership teams to drive sustainable growth.
Here is an overview of our distinctive investment strategy.
Skyward Equity Partners: Our Investment Strategy Unveiled

Acquire Companies at Attractive Valuations

Our journey begins with a thorough selection process, identifying small-medium-sized niche industrial companies that show strong growth potential. We find this segment of the market to be particularly attractive as the companies fall beneath the radars of larger institutional investors.  They are often businesses with solid fundamentals that, for various reasons, are not realizing their full potential.  As a result, there are significant opportunities to acquire these businesses at lower valuations. 
Our goal is to uncover these hidden gems, focusing on opportunities where we can leverage our expertise to unlock value.  By acquiring these companies at attractive valuations, we lay the groundwork for significant value creation.

Integrate and Unlock Value

Post-acquisition, our companies enter a phase of integration and value enhancement. This comprehensive strategy is designed to refine and elevate every aspect of the business. We focus on key areas such as:
Improving Revenues:  Through market analysis, product development, strategic marketing, and cross-selling with our other portfolio companies, we identify and capitalize on opportunities to penetrate new markets and increase sales.  Our sales teams at all three companies have really bought into cross-selling products and services across our portfolio companies.  At each client meeting, we introduce the Skyward platform and where applicable, the services of other portfolio companies.  Just recently, we made an introduction to two major contractors in Alberta that GT Metals has done work for in the past, to LA Metal Buildings.  
As a result of the cross-selling opportunities and the work put in by our VP Business Development with the LA Metal Buildings sales team, we have seen LA Metal Buildings’ value of carried quotes increase tenfold since Skyward’s acquisition.
Boosting Earnings:  Operational efficiencies are at the heart of our strategy. We strive to improve profit margins by streamlining processes, optimizing supply chains, and implementing cost-control measures.  Skyward’s CEO and VP Human Resources are currently working with the LA Metal Buildings team on solidifying a job costing program that better tracks results and helps to increase margins.  
Empowering Leadership Teams:  We believe in the power of people. Empowering the existing management teams with the tools, knowledge, and resources they need to succeed is crucial.   Through leadership development, strategic guidance, and fostering a culture of excellence, we prepare our teams to lead their individual companies to new heightsSkyward’s VP Human Resources, in collaboration with an outside consultant, has implemented an initial phase of employee leadership training at GT Metal and LA Metal Buildings.  The result is a more engaged workforce, and just recently, GT Metal has announced an internal promotion of an Assistant General Manager.  We have also invested time at LA Metal Buildings to create better training initiatives which has quickly translated into higher employee retention.

A Partnership Approach to Growth

Skyward’s mantra, “By Business Owners, For Business Owners,” reflects Skyward’s investment philosophy centered around partnership.  Skyward’s approach is to seek win-win solutions when working with business owners who are contemplating a transaction or partnership with Skyward. We work closely with the companies we acquire, viewing ourselves as an extension of their team. This collaborative approach ensures that we are aligned in our goals, strategies, and vision for the future. Together, we set ambitious targets, and then we roll up our sleeves and work side-by-side to achieve them.  

Looking Forward

Since our launch in November 2022, Skyward has acquired three companies in Western Canada and has built a deep pipeline of acquisition targets.  We continue to seek out opportunities where our strategic approach can unlock hidden potential and value, as we integrate the companies into the Skyward platform. We believe that creating sufficient scale through prudent consolidation will allow us to deliver outsized returns to our investors.  

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