How Do Private Investment Firms Like gTC Group Identify Investments That Offer Real Value?
At gTC Group led by Todd Furniss, we’re committed to building wealth for our clients through investments that offer lasting value. Why? Because investments that add value to the community, whether directly or indirectly, as well as to the investor, are what drive sustainable prosperity.
A lot of our clients ask us what it takes to identify a great investment opportunity. After all, there are so many underdog companies with immense potential, new real estate developments, and intriguing operations out there. Without a strategic, well-informed approach to investing, it’s hard to cut through the noise. Here’s an overview of the investment criteria we use at gTC Group and what we believe it takes to find those wealth-generating opportunities in private equity that offer lasting prosperity.
What Prosperity Looks Like
Whether we’re looking at health care companies or the technology sector, we’re focused on investments that have already proven their worth. We hone in on operations that have a stable customer base and have been earning revenue for at least five years. For younger companies, the reality is, they haven’t been tested yet by the ups and downs in the market so they don’t offer the same promise of lasting value that established operates can provide.
In addition, we look for a minimum EBITDA (earnings before interest, taxes, depreciation, and amortization) of $3 million, although higher earnings usually point to a stronger investment. It’s also important a company has a positive cash flow.
And finally, we assess a company’s values. Are they making an impact in their community? Do they value a prosperous society and make decisions that will help the entire region thrive in some way, or are they focusing on pure profits without considering community impact?
From experience, we can tell you that the companies that are community-impact driven are the ones that are able to thrive in the long term. The reality is, the community a business operates in and the business itself both need each other. By striving to make a positive impact, whether it’s through well-paid jobs, efficient and useful services, compassionate values, or community support, everyone wins in the long run. Only those that understand this reality tend to take a thoughtful approach to problem-solving, which is a must for long-term sustainability.
What It Takes to Find Sustainable Investment Opportunities
Finding these sustainable private equity investment opportunities requires extensive knowledge. At gTC Group, Todd Furniss, Mary Hatcher, and the rest of the team have years of experience in private equity. We understand how complex the process is and know how to take macro and microeconomic data and a deep knowledge of the business model to identify potential.
We look at external factors in the industry, the local economy, and the global economy, as well as the internal factors that come together to form a business. From the strength of a company’s branding to internal methodologies and management perspective, every aspect matters.
By combining our experience, statistical analysis, and observational insights, we believe we can make a positive impact for our clients and identify investments that will prosper over the years.
Contact the team at gTC Group to find out more about our approach to investing.