Courtesy of a client who is busy snapping up good businesses all around the globe, I’m looking for businesses that meet this broad profile and are willing to be acquired.
- Enterprise Value of between $5M to $30M.
- Must have solid Balance Sheet, and P&L, with strong financials for the last 3 FY’s.
- Retiring Vendor, or vendor facing Succession Planning issues, but willing to stay with business for 1 to 2 years.
- Prepared to sign up to partial deferral of Acquisition amount (but $$’s guaranteed, even if revenue downturn).
- MUST have a strong management team, and they must be prepared to stay.
- Management Team willing to do a “partial MBO” (eg: provide 5% of acquisition funds for 10% equity stake).
- Enterprise Value based on between 3 to 3.5 times EBIT.
- Business MUST have substantial Nett Asset Backing (20% to 30%) – can be Property, Plant, Receivables ..etc.
- Sectors include …. Light Industrial, Commercial, Construction, Services for Allied Industries to Oil/Mining/Gas.
Come and talk to me if you think this is you and your business.