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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. 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 supervise all of the back office operations
of the business including accounting, finance, legal, 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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