With a highly leveraged portfolio company already in place, Parks Capital faced a decision that tested discipline rather than ambition. The potential sale of US Retail, the largest customer of ACCM, created pressure to act, but also introduced the risk of compounding leverage and execution complexity. The analysis reframed the decision around protecting existing value rather than pursuing incremental upside, examining whether vertical integration, a standalone acquisition, or inaction best preserved equity returns. While strategic logic existed for deeper integration, financial constraints and execution risk dominated under leverage. The recommendation favored restraint, emphasizing that in private equity, the best decision is often avoiding a deal that turns strategic clarity into balance sheet fragility.
