CORWIL Technology Corporation
The Right Company; The Right Partners
Tonka Bay partners with an Investor CEO to pursue a proactive investment strategy focused on acquiring a medical manufacturer.
Tonka Bay has a pro-active approach to sourcing deals which is based on industry expertise and operating executives. They don't just wait for a successful business plan to land on their desk, they partner with seasoned senior executives, or Investor CEOs, to co-develop an investment thesis and then proactively search for companies that uniquely fit the thesis and the Investor CEO's background. The Investor CEO isn't looking to take away a business-owners' job; instead they help with due diligence, invest alongside Tonka Bay, and most often act as an active board chair post closing, providing invaluable industry insights and contacts to help the business and build the existing team.
After achieving success with past investments in highly-engineered outsourced manufacturing companies such as Accu-mold and All Flex, Tonka Bay focused on what made those companies excel: engineering capabilities to handle prototypes, operational excellence to handle production, and a high margin medical end market focus. Tonka Bay partnered with the chairman of All Flex who acted as an Investor CEO in a search to find a highly engineered manufacturing business focused on low volume, high mix medical manufacturing. Together they developed an investment thesis and sourced nearly 100 companies that fit the criteria.
When Tonka Bay found CORWIL, they weren't for sale. Over time, Tonka Bay, the Investor CEO and the business owners got to know each other and explored the benefits of a partnership through a partial sale, where the original founders would still have post-closing ownership and roles.
Tonka Bay focuses on people and relationships first. Once the business owners opened up about the company they built and what they wanted for the future, Tonka Bay understood what industry and functional expertise might help. Tonka Bay introduced the founders to another seasoned executive, from its deep bench of Operating Partners, who could help open doors with customers and optimize the operating processes based on his past industry expertise. "We know that no CEO wants a board filled with finance-people focused solely on numbers. Tonka Bay's approach supports the management team by surrounding them with resources to accelerate growth and build on existing success", said Tonka Bay Principal, Molly Simmons.