Management
Prescott’s activities are directed by a Management Committee comprised of the firm’s senior principals. The Management Committee has ultimate responsibility for the overall policies and operating procedures of the firm as well as for its direction and strategic focus. All significant management decisions and investment activities of the firm are directed and reviewed by the Management Committee.
The firm’s Operating Committee is responsible for direct oversight of the ongoing operations of Prescott and its affiliates as well as the day-to-day management of the activities of the firm. The Operating Committee is comprised of the firm’s senior principals as well as key administrative and financial personnel. The Operating Committee directs Prescott’s operating and financial management, budget and planning process, compensation and benefits policies, and performance management systems. It also oversees all matters relating to organizational policy.
Investment strategy for the firm and for each of its investment entities is overseen by an Investment Committee responsible for setting investment objectives and for directing the investment process. The Investment Committee establishes investment guidelines outlining specific acquisition objectives and criteria; reviews particular acquisition opportunities that meet Prescott’s investment requirements; oversees detailed due diligence to evaluate each asset’s economics, market position, physical condition, and environmental attributes; determines pricing and capital structure for Prescott’s investments; directs purchase negotiations for the assets to be acquired; and coordinates the final closing of the acquisition. The Investment Committee also monitors each investment’s ongoing performance and, when appropriate, recommends changes to its operating plan. As part of this process, the Investment Committee periodically reviews each investment’s ownership and capital structure, its current realizable value, its operating performance and prospects for continuing appreciation, and its ongoing suitability relative to Prescott’s investment objectives. The Investment Committee also determines when a sale or other disposition of an asset is appropriate.