Our Relationship with Professional Management
As Professional Owners, we are committed to developing and maintaining a strong, trusting and enduring relationship with the Professional Managers who are in charge of and operate the Lubar companies. Professional Managers are our partners. They are responsible for building and sustaining successful businesses. Our duty is to support and encourage them as well as guide, coach and offer resources to assist them. We do this by engaging in regular and close communication, cooperation and collaboration, which is honest, transparent and helpful. Here are the most common examples of our relationship with the CEO and senior management team:
MONTHLY UPDATES: We meet monthly with each company to review financial results, business metrics, issues, challenges and opportunities, all directed toward understanding how the business is performing consistent with management’s strategic plan. We brainstorm opportunities and challenges together and bring relevant resources and ideas to help address these matters. Written summaries of the monthly meetings are circulated within Lubar & Co. and with outside board members to keep everyone apprised of the businesses’ progress.
BOARD MEETINGS: The Board of Directors typically meets quarterly. The board consists of representatives of Lubar & Co. plus one or two outside advisors that management and we believe bring particular knowledge and experience. These meetings focus on strategy and the status of current tactics and initiatives to drive the business. We talk extensively about customers, employees and operations as well as potential capital investments in people, processes, R&D and plant and equipment with the intent of building and strengthening the business and increasing revenues and profits.
STRATEGIC PLANNING: Each business engages in a formal annual strategic planning process, often facilitated by an outside consultant of their choice. Lubar & Co. will participate in all or portions of those meetings to solicit our thoughts and input and to understand management’s vision, ambition and plans for the future.
RECRUITMENT: When hiring new members to their senior management team, Lubar & Co. will often be asked to participate in the recruitment process. Our role has ranged from reviewing the job description and compensation package to providing input on desired job experience and skill levels. If involved in interviewing, we typically present our investment philosophy and style of ownership which management believes assists in attracting top talent.
Our duty is to support and encourage
as well as guide, coach and offer resources.
MEET WITH CUSTOMERS: When asked, we also meet with customers of our businesses. We are generally asked to confirm our investment philosophy and strategy of building the business for the long term with no planned intention of selling, especially to a competitor, foreign or unfavorable investor. This approach has enhanced our companies’ relationships with their customers and resulted in several significant investments in our companies by their customers. In these customer meetings we also describe our deep understanding and experience with multi-billion-dollar corporations like them and express appreciation for their perspectives and decision-making processes.
ACQUISITIONS: Management shares with us M&A inquiries and add-on acquisition opportunities presented to them. We have the expertise and experience to take the lead in assessing these opportunities with management.
FINANCIAL MODELING: Lubar & Co. has advanced capabilities in financial modeling to evaluate all aspects of a particular opportunity or investment. We have modeled thousands of opportunities and have career-long experiences which help guide the determination, impact, and trajectory of business variables including macroeconomic trends, tax treatment and more. If asked, we also support the annual budgeting processes for our businesses and readily seek outside contacts and resources to improve and verify underlying assumptions.
OUR CONTACTS: The Lubar & Co. team has thousands of contacts and relationships with experts in many business sectors and disciplines which are made available as and when needed.
BANKING: Lubar & Co. typically manages the financing and banking relationships for our companies, utilizing close existing relationships with several national and regional financial institutions who understand our history, investment philosophy and long-term commitment to our businesses.
CEO FORUM: The CEOs of the Lubar companies meet on a periodic basis to share best practices in their businesses and discuss solutions to common issues. They also regularly meet and communicate among each other outside these meetings.
WE ARE ALWAYS AVAILABLE: Everyone at Lubar & Co. is always available for support, advice, counsel, feedback, and input. We communicate often and regularly with the CEOs and their senior management teams and encourage them to call when they have a need. We believe this regular, honest, transparent, and supportive communication has been a core component to consistently achieving superior results.