The Alaris structure is unique. We offer the following benefits to our Partners:
Owners Continue to Run their Businesses
Alaris’ unique investment structure generates returns in the form of monthly distributions that are reset based on the year over year change of a company’s top line results. This structure allows Alaris to be monitors of the business, rather than operators, and thus allows the business owner to continue to run their business as they always have.
Alaris is a long-term capital partner which does not require an exit strategy. This allows the entrepreneur to focus on their long-term goals and vision for the company rather than the short-term goals that a traditional equity provider would focus on, which is the need to make their returns on an exit within the first 3-5 years.
Alaris’ Partners pay distributions to Alaris on a pre-tax basis, this lowering the effective cost of Alaris' capital for our Partners.
Partners Have Higher Participation in Growth
Alaris limits its participation in our Partners’ growth. Growth from acquisitions and new locations remain entirely with the entrepreneur until these new locations become an organic piece of the business. Our distributions from our Partners also often have a collar which limits our participation in the company’s top-line growth to the upper portion of the collar. Lastly, because our investment is tied to the top-line performance of the business, any operational improvements (such as cost cutting measures) go straight to the bottom line of the business, and therefore increase the entrepreneurs' economic interest in the partnership.