WYNDHAM PHILIPPINES PARTNERS
Increasing the Value of Its Portfolio Companies
With its in-house operating organization, Wyndham Philippines is able to recognize unexploited value, pre-acquisition, and then realize such value, post-acquisition. Wyndham Philippines’ strategy is designed to:
- Identify operating improvements in a prospective portfolio company pre-acquisition and implement those improvements post-acquisition
- Provide portfolio companies access to low-cost, flexible, U.S.-based financing, where local financing is unavailable
- Secure additional orders for portfolio companies, particularly from existing customers
- Implement in each company up-to-date reporting systems and controls
- Minimize the use of debt to acquire portfolio companies, other than for working capital to expand their businesses
- Utilize the buying power of Wyndham Philippines’ international trading relationships to reduce raw material costs, where advantageous
- Focus on increasing sales to current customers and expansion of distribution through Wyndham Philippines’ international trading relationships, particularly to penetrate new markets which Wyndham Philippines and its portfolio companies would not otherwise be able to do on their own
- Maintain costs in Philippine pesos while emphasizing sales in the stronger or more liquid currencies of its export customers
An important component of Wyndham Philippines’ strategy is to maintain portfolio company costs in Philippine pesos, traditionally a less liquid, weaker currency, while maximizing sales, wherever possible, in more liquid or stronger currencies, such as US dollars, euros or yen. This will aid the financing of each portfolio company’s operations in the international capital markets and render it more marketable when Wyndham Philippines looks to exit the investment.
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