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We are the principal investor (typically with majority ownership) in all of our business ventures. We do not invest in third party funds or act as an agent for others.
DMS’ Typical Deal Structure and Compensation Structure:
In a typical transaction, DMS will invest alongside the company's management team and strategic financial partners. If the management team does not have sufficient financial resources for direct investment, DMS can provide assistance in borrowing funds or DMS will devise incentive plans that create equity-like interests for managers. Typically, the management team partners receive a base salary, a bonus, and equity profit distributions. DMS has found this structure allows management team members to earn exceptional rewards when exceptional results are achieved.
Capital
Needs:
Since DMS is a long-term equity partner, it arranges for additional Dobbs Family investment when growth capital is needed.
DMS'
Typical Day-to-Day Involvement:
DMS works closely with the management team, but does not provide day to day executive management. In DMS' previous investments, the management team has responsibility for managing those operations of the business that directly influence the bottom line including relationships with external customers, vendors and employees.
DMS' role has been to strategically supervise the back office operations of the business including accounting, finance, banking, legal, risk management, compliance and the financial aspects of the HR department. This type of arrangement frees up the management team's time to concentrate on those functions that directly affect profitability, while assuring the equity owners that the business is being operated soundly from an accounting, legal and compliance perspective. DMS believes its experience and expertise in supervising these functions brings substantial value to the management team partners. DMS will also work with management in preparing and implementing annual business plans and budgets and in making critical strategic decisions.
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