Berkshire Partners was founded and led by of five as a private equity firm adhering to the following characteristics: building and sustaining relationships, rigorous work, deep analysis and the environment of open decision-making. Berkshire opts to create value by strategizing and re-allocating assets. They also use the idea of quality over quantity when it comes to potential investments. Berkshire and Carter’s had the same vision in terms of the potential Carter’s had to grow. Carter’s had recently launched a new brand called Tykes, showing its desire to grow and Berkshire’s was focused on investing in companies with the potential to grow. The two firms Seeing Eye to eye is an ideal strategy in deal making.
Carter’s fits Berkshire’s investment philosophy by maintaining a brand image and sustainable growth model along with posting increasing revenue trends and high profit margins.Because of the target deal? Berkshire’s large equity-base will facilitate the purchase of and further enable Carter’s expansion and profitability. InvestCorp S.A., a Bahrain based investment company, previously acquired Carter’s at a time when the retail store’s operations and management were lacking(struggling?). Investcorp’s intentions were to alter the company’s operations and management structure in the hopes of generating higher revenue and creating value. After reaching their five-year tenure, Investcorp concluded Carter’s was running smoothly enough and generating sufficient returns(needed?) to begin employing an exit strategy and simultaneously replenish Investcorp’s needed liquidity.
Carter’s current financials show the retail company’s ability to generate positive free cash flows. The projections continue to show the company’s ability to repay debt and justify the sustainability of a leveraged-buy-out for Carter.
In the retail sector, strong sales are indicative of strong financials and