Case: Brazos Partners And Cheddar's Inc.

CASE: CHEDDAR’S (MW) Name Affiliation Case: Cheddar’s (MW) Brazos’ investment strategy is based on deliberations from an informed panel of experts with each bringing on to the table an in-depth level of understanding of the leverage buyout business. The CEO of Brazos, Fojtasek, has enough knowledge of family-run businesses having increased the family business revenues for Atrium by 54% in 1995 and negotiated three profitable buyouts until meeting his partners Fronterhouse and Mcgee. Brazos’ investment strategy is built on mainly focusing on small or medium-sized enterprises valued between with $50 million to $250 with a proved potential of making superior returns. The firm further developed a unique approach to the market by putting more emphasis on Generation Transfer Transaction (GTT). The strategy seems well suited for the firm as a first-time fund as it mainly seeks to invest in local business units located around Texas and its environs. The Dallas-based firm uses this approach as it puts the co-owners at an advantage point of gaining information on the management of their focus enterprise. The strategy is not only based on the size of equity placed for a business entity and its potential for superior returns but also on a solid management team whose passion and drive for success is evident for the LBO firm to assess. The emphasis put on GTT places the firm at an advantage over its competitors as the market in Texas is the single most known having the largest number of private and public medium-sized companies in the United States of America. The current recessionary climate provides a lot of opportunities for the LBO industry as more local based companies face closure due to bad debts from b...