ADVISORY & ACQUISITION
Red Letter Holdings is a private investment and advisory firm focused on acquiring or the managing of manufacturing, service and construction based companies in the lower middle market. The mission of RLH is to build partnerships with business owners who are looking for an exit strategy, reduced role or opportunity for recapitalization and with other private investment firms looking to deploy capital. These partnerships are intentional and nurtured to ensure that all parties involved understand and are comfortable with the structure and process.
In addition to meeting the specific needs of institutional investors, RLH is seeking opportunities to continue the legacy of acquiring closely held companies. The priority is always to connect companies with strategic partners that fit the scope and needs of all parties involved. With this ideal in mind, RLH is looking to acquire companies that fit well with existing operations and management to establish and maintain a professional and productive relationship with both parties’ best interests in mind–and to foster a successful, long-term vision for success.
RLH relies on strategic planning to evaluate, plan and structure deals. This provides investors a more dynamic, three-dimensional view of the company’s management and insight into the future direction of the company’s products, customers, capacity, risks, restraints, and drivers. This approach allows an investor to deploy capital with clear and specific targets, both immediate and long term, for the direction of the company.
Many owners, especially those retiring or pursuing other interests, may like the idea of retaining cash flow, but no longer have the desire to be involved in the day-to-day operations. RLH can provide a flexible structure that allows them to separate their equity position from their operational duties. Many owners find it fulfilling to watch their company grow, even while they are enjoying a season of reduced stress and flexibility. This structure is especially useful in companies where the enterprise value of the business is not significantly higher than the current cash flow.
RLH is intentional about understanding the specific needs of institutional investors. As a foundation is built, RLH is committed to providing opportunities that meet investor’s’ unique objectives. In rollup scenarios, RLH will work closely with the investor to identify the appropriate strategy and the right companies to execute that strategy without the expense or opportunity cost of developing a search company.
Tony Mullet founded RLH in 2007 after selling a family owned business to a strategic buyer. Since that time he has been on both sides of multiple business transactions and, as a result, possesses the unique perspective of all the parties involved in the process. He understands the logistical challenges as well as the emotional energy involved for an owner who is considering giving up control of their company and is committed to simplifying and personalizing the process. His philosophy that “bigger isn’t always better” is a driving force behind his business model and he is committed to building individual relationships on both the sell and buy side.
Tony started out in manufacturing and masonry work and carries that blue collar approach to the world of private equity. He sees himself as a bridge between the institutional investment community and the entrepreneurial business owner who is focused on running his or her business and taking care of their employees. Best summarized, “The cleanliness of theory is no match for the mess of reality.” (Bruce Herwig)