We seek to acquire controlling equity positions in stable niche businesses in the UK which have a defensible market position. We have a longer term time horizon and look to support business growth over a 5 to 10 year period. The investment may be by way of an MBO where existing management have funds to invest, or by way of MBI.

Criteria

We are seeking businesses where the vendor is considering a full or partial exit

The business will have an established defensible market position with sustainable revenues. This position may be due to proprietary technology, long term customer relationships or diversity of customers based on a demonstrable competitive advantage.

We expect the businesses we acquire will have a turnover of £500k to £5m. They will normally have a profitable trading history over the past 5 years and gross margins of in excess of 30%

If the vendors intend to leave the business then an experienced management team will be in place or a plan for a gradual transition of management over an extended period.

Investment process

• Form a broad understanding of the business by review of the management information made available and meetings with the vendor and management.
• Assuming our appraisal is positive, we would prepare a preliminary investment paper, which will be approved.
• Issue approved outline offer, followed by signing heads of agreement
• Focussed due diligence process
• From heads of agreement, we would aim for completion within 6 weeks.