Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 23

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 23
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### Management Strategy
Our management strategy involves the proactive financial and operational management of the subsidiaries we own in order to increase cash flows and shareholder value. Our Manager actively oversees and supports the management teams of each of our subsidiaries by, among other things:

• recruiting and retaining talented managers to operate our businesses using structured incentive compensation programs, including non-controlling equity ownership, tailored to each business;

• regularly monitoring financial and operational performance, instilling consistent financial discipline, and supporting management in the development and implementation of information systems to effectively achieve these goals;

• identifying and aligning with external policy and performance tailwinds such as those influenced by growing climate, health, and social justice concerns (and similar environmental, social and governance ("ESG") drivers);

• assisting management in their analysis and pursuit of prudent organic growth strategies;

• identifying and working with management to execute attractive external growth and acquisition opportunities;

• assisting management in controlling and right-sizing overhead costs;

• supporting an internal culture of transparency, alignment, accountability and governance, including regular reporting;

• professionalizing our subsidiaries at scale; and

• establishing strong subsidiary level boards of directors that can support management in their development and implementation of strategic goals and objectives.

Specifically, while our businesses have different growth opportunities and potential rates of growth, we expect our Manager to work with the management teams of each of our businesses to increase the value of, and cash generated by, each business through various initiatives, including:

• making selective capital investments to expand geographic reach, increase capacity, or reduce manufacturing costs of our businesses;

• investing in product research and development for new products, processes or services for customers;

• improving and expanding existing sales and marketing programs;

• pursuing reductions in operating costs through improved operational efficiency or outsourcing of certain processes and products; and

• consolidating or improving management of certain overhead functions.

Our businesses typically acquire and integrate complementary businesses. We believe that complementary add-on acquisitions improve our overall financial and operational performance by allowing us to:

• leverage manufacturing and distribution operations;

• leverage branding and marketing programs, as well as customer relationships;

• add experienced management or management expertise;

• increase market share and penetrate new markets; and

• realize cost synergies by allocating the corporate overhead expenses of our businesses across a larger number of businesses and by implementing and coordinating improved management practices.

#### Acquisition Strategy
Our acquisition strategy is to acquire middle-market companies that we believe have a sustainable competitive advantage and are poised to gain share in attractive markets. Our goal is to produce stable and growing earnings

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