What did BE seek from a private equity investor?
BE’s owners and management knew they had a “tiger by the tail.” By the time Berkshire met the Company in early 2004, revenues were on pace to have more than quadrupled from 2001 to the end of 2004. BE’s shareholders and management wanted to denominate some of the resulting equity value that had been created, but also knew that they needed help to address the Company’s key resource needs as it continued its rapid growth. These needs were concentrated in such areas as developing management depth, strategizing and prioritizing which growth initiatives to pursue, ensuring product quality and fulfillment, and otherwise facilitating all of the general corporate development required to stay ahead of rapid change. Furthermore, any financial transaction had to be done minimizing distractions from management’s core activities, and also had to result in a capital structure that would support the Company’s ongoing expansion. BE’s owners and management quickly realized that they needed to focus on
