Investment Principles

Our exclusive industry focus and profound understanding of the market enables our ability to identify compelling investment opportunities through different industry cycles, quantify risk, and tailor the right investment thesis.

Our process has allowed us to build exceptional credibility in the market where what we propose at any point is what we are prepared to execute on.

— High professional adherence to confidentiality and deal auction process

— Highest standards of candor in terms and transaction structure

We pursue compelling investment opportunities in the aerospace and defense sector that fit into the broader strategy. We look for companies that are able to resist down cycles and can demonstrate a compelling potential to improve margins and increase shareholder value. Our target acquisition values range from $50 -$100 million and are strong financial performers operated by highly driven leadership teams with an entrepreneurial spirit and favorable dynamics for sustainable earnings growth.

Deal Generation: We leverage long-standing industry relationships to develop the right investment thesis and enhance deal flow, of which 75% is organic. Our industry expertise allows us to profile opportunities, screen companies and devise a plan to approach targets.

Due Diligence: Our unique access to the leading industry minds and extensive coverage of all the aerospace and defense subsectors, allows us to analyze factors driving the industry’s operating environment throughout the entire supply chain providing real time access to the most important data points and variables impacting the company.

Acorn’s ultimate competitive advantage lies in the fusion of its systematic due diligence process and unique portfolio-operating model.

Customary due diligence processes usually involve a review of basic financial and operational checklists. This standard approach of focusing primarily on the quality of earnings and legalities often leads to a process of ‘checking boxes’ as the basis to execute a closing.

Our due diligence process, however, not only validates early assumptions influencing the purchase thesis and corresponding valuation, it also creates a roadmap for the future state of the company positioning it for optimal value upon exit.

Because we only pursue investments in which we can add value, beyond checking accounts for accuracy and verifying the company’s stability, we use due diligence to identify areas of the business that are deficient and assess whether it has the requisite skills to turn deficiencies into operating strengths. 

Post acquisition, our portfolio management team collaborates with management to ensure the company's performance meets or exceeds the investment case. Opposite to standard private equity performance review practices, our operating model consists of daily interaction with company’s management to ensure performance is met from day one post-closing to exit.  

Exit: Our approach to realization is to identify the optimal exit strategy, one that aligns with the future well being of the company and will maximize returns for stakeholders.