Jaime Forsyth, Monomoy Partner and Head of Investment Team, was recently featured in Mergers & Acquisitions’ article Six Questions That Define a Quality Target Company for Private Equity.

The piece illustrates how private equity firms identify quality companies for investment, with Forsyth sharing Monomoy’s thorough approach to evaluating potential investments.

“As part of our rigorous underwriting process built around four key questions, Monomoy defines a quality company through two key questions in particular: Does the business have a reason to exist, and does it have the ability to grow? At a high level, these are the fundamental markers of a high-quality business,” Forsyth explains in the article.

She further details Monomoy’s investment framework: “From there, we assess whether the opportunity has the characteristics of a Monomoy investment with two additional questions: Does the company face challenges that Monomoy can understand and help address? And do we see a path to a successful eventual exit? These questions help determine whether we can drive meaningful value creation and whether we believe we can meet our performance thresholds for our key stakeholders.”

Forsyth has been with Monomoy since 2008, leading many of the firm’s most successful transactions. In addition to managing deal execution, she oversees the Investment Team and spearheads various continuous improvement initiatives across the firm.

In discussing Monomoy’s investment criteria, Forsyth notes: “Monomoy looks to invest in market leaders that exhibit distinct qualities and characteristics such as strong competitive moats, diversified revenue streams, demonstrated growth in both revenue and earnings and stable, sustainable cash flow generation. In addition to focusing on financial fundamentals, Monomoy seeks business opportunities where our internal Operating Team can significantly enhance value and where there is a clear and strategic plan for exiting the investment.”

The article also highlights how Monomoy’s approach goes beyond reviewing transaction materials. Forsyth explains: “We seek the management team’s insights on key factors such as market share, customer/supplier dynamics, operational footprint and organic growth trends. Additionally, we want to explore deeper aspects beyond the transaction materials: What specific challenges is the business facing, and how can we contribute to overcoming them? If given access to additional capital, where would the company invest it? And what keeps them up at night?”

Read the full article here and learn more about how Monomoy distinguishes quality companies and creates meaningful value.