What kind of business do we look for?
Recurring Revenue
There are businesses that transact with the same customers year on year, providing a phenomenal service that is constantly required. The product or service becomes fundamental to the customers processes or product.
Cash Generative
Cash is king. We are looking for businesses with a strong track record of profitability and cash conversion. Given our long term investment horizon, we will use this cash generation to reinvest in growth, pay shareholders and build on the great platform sold to us by the retiring owners.
Unsexy sectors
Unsexy does not mean undesirable. The business sectors we appreciate are ones which deliver a fundamental society requirement. This does not need to be something that is exciting. It needs to be something that is necessary. These sectors are unlikely to be disrupted so will deliver long term performance however, we believe in the use of technological innovation to improve them.
EBITDA between £800k -£3m
Small is beautiful. Whilst SMEs account for three fifths of the employment and around half of turnover in the UK private sector, recent research has suggested that 80% of small businesses that go to market never sell. We are here to offer a different option for business owners when they are looking to sell.