As concern is understandably rising around the spread of the COVID-19 (novel coronavirus), the Auldbrass Partners team has taken action to ensure that the health and safety of our employees, investors, and their families is a priority during this time of crisis.
Additionally, we are actively following the latest reports and recommendations from the Centers for Disease Control (CDC), the World Health Organization (WHO), and International SOS (ISOS) in order to help inform our policies and operations.
As such, we have taken the following preventative actions:
• All employees will work from home through March 27th. We will modify the return to the office if needed based upon updated information and recommendations from governmental agencies.
• All business travel has been suspended and meetings are conducted either virtually (through video conferencing) or teleconference calls.
• Our Business Continuity Plan has been updated to include a pandemic event.
Because we regularly test our Business Continuity Plan to prepare for events that force us to work remotely, we expect that these actions will not adversely affect productivity, or our ability to actively evaluate new investment opportunities, with an added emphasis on overall profitability and liquidity. Auldbrass Partners is fully equipped with the necessary systems and technologies to make these actions seamless and, if need be, ongoing for many months.
A review of our portfolio confirms that our companies have the resilience to withstand the recent market disruption. Consistent with our investment philosophy we have acquired portfolio companies that have strong growth, no immediate cash needs and modest leverage. These types of companies can navigate through the short-term uncertainty and volatility that has come with the coronavirus outbreak. Although there will be unforeseen challenges and choppy waters ahead that will likely affect our companies and their individual markets, we will continue to engage with the managers of our investments to do everything possible to limit any negative impact. We also understand that times of crisis do not necessarily limit opportunities. To that end, we will continue to look for investments that meet our criteria with a keen focus on pricing and valuation metrics.
We are grateful for your ongoing support and welcome any questions you might have.