BHG Ventures (“BHG”), the investment arm of a prominent Midwest family office, approached Cascade Partners with the objective of creating, defining and executing an expanded investment strategy. While BHG had a history of successfully acquiring and building companies, doing so consistently and as part of a more cohesive strategy (something we see quite often with family offices) was key to their growth. As we learned more about BHG’s needs, it became clear that the task at hand was to create an investment thesis that aligned with the family office’s objectives, interests and strengths.
The Cascade Difference
As we do with every client, our execution of this transaction started with a lot of listening – listening to needs; listening to short and long-term goals; and listening for the overall vision. Once we understood the objectives of BHG, our team worked together to research, road map and define an investment thesis centered around the fundamentals within three segments:
- Recreation and Fitness
- Health and Wellness
- In and Around the Home
Through our proprietary deal sourcing network, we identified Sportsman’s Guide, and later, The Golf Warehouse, as compelling assets that fit directly within the Recreation and Fitness arenas. We agreed these two businesses would create a dynamic leading ecommerce platform within the sectors. Once the targets were identified, we needed to move quickly in the evaluation and assessment of the two entities, which entailed carving these out from Northern Tool & Equipment.
As the first recreation & fitness investment within the BHG portfolio, this transaction was complicated, but proved to be the perfect challenge for the Cascade team to shine. It involved a corporate carve-out and the acquisition of two separate entities. This meant double the diligence, and the need to partner with an exceptional advisory team to effectively and efficiently diligence the opportunity.
We successfully “quarterbacked” the entire process, including sourcing the transaction, coordinating the diligence, negotiating the deal at favorable terms, arranging the financing, and closing two deals as one. This allowed for the creation of a dynamic and robust leading ecommerce platform within the recreation space.
Our sell-side experience allowed us to understand the position of the sellers and lead the buy-side process through strategic, informed, and respectful negotiations.
After the initial integration and grounding within the BHG family of companies, we intend to look for add-on acquisitions for both Sportsman’s Guide and The Golf Warehouse, as Cascade Partners will remain as BHG’s outsourced corporate development team.