Our investment focus and team infrastructure allows us to pursue an in-depth, yet efficient and timely, decision making process.

Once we have identified an investment candidate, we focus on the following:

• Business Review: This includes a comprehensive review of a company’s business and industry sub-sector. As part of this review, we perform in-depth due diligence, financial analysis, evaluation of different operating scenarios and alternative capital structures.  Key themes that we generally look for when investing new capital, include:  (i) strong existing management or the opportunity to recruit new management; (ii) participation in an industry in which we have experience and expertise; (iii) a viable competitive position; (iv) opportunities to grow and generate increased cash flow; and (v) possible exit scenarios.
   
• Management Assessment: A company’s management team is paramount to the potential success of any given investment.  We assess management’s past performance and experiences against the expected path that may be developed for a company on a going-forward basis. These critical capabilities range from people skills to financial acumen, product knowledge to customer awareness, competitive positioning to performance attainment.
   
• Capital Structure Analysis: We conduct comprehensive capital structure due diligence, including an evaluation of the terms and underlying structure of a company’s debt and equity securities. This review includes a thorough analysis of the underlying documentation for each security, employing forensic accountants and appropriate counsel, where necessary. 
   
• Valuation Analysis: Sigma performs a thorough valuation analysis on each prospective investment. This analysis takes into account a company’s enterprise value as a going concern and its break-up or liquidation value. It also incorporates a comprehensive review of market measurements, regulatory issues, and other factors that can impact valuation. Independent financial models are developed for each investment opportunity based on projected financial and operating results. 
   
• Exit Potential: When making an investment, we seek to evaluate multiple exit options. Exit strategies may include a public offering, a private sale to a strategic or financial buyer or a recapitalization. An analysis of the exit or the liquidity strategies for each investment will be made as part of the initial evaluation and will be monitored on an ongoing basis throughout the life of the investment.