Marc Leder Gives Advice on Company Buyouts

It takes a special person with keen eyes to recognize a diamond in the rough. Marc Leder is such a person. The Co-Chief Executive Officer of Sun Capital Partners, Inc. loves the challenge of financing struggling companies and returning them to tiptop shape. Together with his business partner Rodger Krouse, the two would identify where they should put their money in. while others might see this as risky, Marc Leder insists that they are not only going on intuition. There is certainly an art to doing this kind of business. In this article, Marc Leder gives some pointers on how to stay afloat in the private equity business.


Pay Attention to Corporate Culture

Marc Leder cannot stress this point enough: a lot of information can be gleaned from observing and analyzing company culture. To quote the man himself, “We invest in formalized culture studies for each portfolio company, and then we work with management to improve the culture. After a large number of portfolio companies underwent a cultural study, we found that culture was an excellent predictor of performance over time.” Marc Leder insists that the focus on corporate culture is not simply theoretical. Sun Capital Partners Inc. looks at four important attributes: adaptability, mission, involvement and consistency.

Three Important Questions to Ask Before Investing In Any Companies

Marc Leder likes to ask himself three important questions before committing any capital in a company. He insists that these questions would make everything fall into place:

1). Would Sun Capital Partners Inc make a difference?

2). Is there already a management team willing to partner with Sun Capital Inc.?

3). Is the company a market leader and important to its customers?

If the answers to these questions are all yes, he and Rodger would proceed.

Who Is Marc Leder?

After earning his Bachelor of Science degree in Economics from the Wharton School of the University of Pennsylvania, Marc Leder started to work for Lehman Brothers in New York. After nine years in the company, he reached the position of Senior Vice President. Wanting more freedom in decision making as well as challenging himself and his abilities, he left Lehman Brothers and established Sun Capital Partners Inc., in 1995 with his partner and former Wharton classmate Rodger Krouse. They decided to move to Florida for the more relaxed atmosphere, and they have never looked back ever since. Sun Capital Partners Inc. has invested in more than three hundred companies all over the world in various industries. Not satisfied with having professional success, Marc Leder also regularly engages in philanthropy. Together with Rodger, they have donated to over one hundred charities. What’s more, their company Sun Capital Partners Inc. has set up a charity committee dedicated to helping those who are less unfortunate. Both partners also encourage their employees to donate both time and money to local charities as well as identify great and deserving charity organizations. Marc Leder really believes that good fortune should be spread around.