Our Strategy

Core Capabilities

Proven Success in Turnarounds and Restructurings
LBF approaches Special Situations with the confidence borne from having successfully transformed numerous companies from underperforming assets with limited viability to profitable businesses that can continue to serve customers, employees and investors for years.
LBF’s unique focus on small, underperforming enterprise software companies makes our firm one of the few companies willing and able to create value in challenging situations. We achieve this through fundamental improvement in the business and operations of our portfolio companies, rather than relying on financial leverage or financial engineering to drive returns.

Experienced Team
The LBF team consists of experts in all aspects of acquiring, operating and creating value for enterprise software companies and their stakeholders. Collectively, we have participated in well over 100 M&A transactions and in nearly every imaginable type of transaction including equity and debt financed deals, bankruptcies, reverse mergers, take privates, hostile transactions, MBOs, LBOs, etc. We operate as a self-contained merchant bank capable of managing operations on a day to day basis for our portfolio companies as well as possessing the capacity to handle every aspect of a strategic transaction (acquisition, divestiture, merger, etc.). Due to the relatively small size of the companies we specialize in, this capability saves our investors and our portfolio companies hundreds of thousands of dollars in professional service fees while delivering unparalleled expertise in the field. In addition, our financial incentives are aligned with our investors as we don’t get a return on our investments until they do.

Certainty of Closure
Once we decide to pursue a transaction, we commit the capital, expertise and resources necessary to ensure that the transaction closes in a timely manner. Our focused investment strategy, track record, and commitment to efficient deal execution provide sellers and other constituencies with confidence that we will close the transactions we pursue. Through the Fund, we have the ability to bridge transactions to a close without relying on third-party financing. Furthermore, financial intermediaries know that when they bring a deal to us, our unmatched expertise in the field insures that we will give them a rapid response on whether we will be interested in pursuing a transaction with them. We firmly believe that time is the most precious commodity in the M&A world.

Capitalizing on Market Inefficiencies
The market for Special Situations, especially assets or companies confronting difficult operating problems (versus simply financial) is generally inefficient and presents an opportunity to acquire businesses or assets at attractive values. The low level of understanding of this marketplace by the investment community coupled with the acute need for new strategic directives and sophisticated management magnifies LBF’s buying power and increases the opportunity to achieve superior investment returns.

Unique Transaction Sourcing
Our industry focus and extensive network of relationships with workout and turnaround professionals, commercial and investment banks, law firms and other professionals involved in restructurings and bankruptcies provide us with a variety of unique opportunities.

Working Closely with Portfolio Companies
The closing of an investment transaction is only the beginning of the process of creating equity value. We are very involved investors who expend a significant amount of time and resources working with our management teams to build value in our portfolio companies. From the creation of a turnaround plan through its execution, LBF is involved on a real-time basis. We encourage our management teams to take a long-term perspective in building businesses and approve the expenditure of capital in a manner consistent with our overall investment strategy. Our professionals are continuously seeking follow-on acquisitions and growth opportunities for our portfolio companies, and we take the lead in connection with capital markets activities and financings.


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