If you share our vision and would like to partner with us in our quest, please contact us to present our value proposition.
Characteristics of our investors and advisors include:
- Focus on investing in middle market companies acquired through the search fund business model.
- Partner with entrepreneurs, providing them with expertise and capital through the process of sourcing, acquiring and operating companies.
- Fill a void in the private equity markets — to pursue businesses which are fundamentally attractive, but lack the scale and high growth characteristics sought by traditional venture capitalists.
Why invest in Australia?
We believe Australia attracts investors by its economic maturity and political stability, robust regulatory frameworks with efficient and transparent processes, healthy equity markets, the rule of law, and quality resource assets. Australia is:
- Ranked 13th globally on the Corruption Index (EY, 2016)
- Ranked 15th in ease of doing business (The World Bank Group, 2016)
- Mid-market has increased 85% in value and 72% in volume since 2011 (Pitcher Partners, 2016)
Why we target the Australian SME sector for an acquisition?
- The Private/family-owned businesses account for around 70% of all Australian companies (KPMG, 2009). Their average turnover is $12 million per annum (MGI, 2006), with 23 employees (MGI, 2013).
- There is an estimated $4.3 trillion in wealth in the sector, with 81% of owners intending to retire in the next ten years. That’s a generational wealth transfer of $3.5 trillion (MGI, 2006).
- The average age of private businesses in the sector is 34 years, with the average age of the owner being 58 years (MGI, 2013).
- 64% of family businesses owners would seriously consider selling if approached (MGI, 2013).
- 44% of business owners are currently planning to sell their business (KPMG, 2009).
References:
EY, 2016. Transparency International Corruption Perceptions Index 2016.
The World Bank Group, 2016. The World Bank Annual Report 2016.
Pitcher Partners, 2016. Dealmakers: Middle-market M&A in Australia 2015.
KPMG, 2009. KPMG and family business Australia survey of family businesses in 2009, Bond University, Australia.
MGI, 2013. The MGI Australian Family and Private Business Survey 2013. RMIT University, Australia.
MGI, 2006. The MGI Australian Family and Private Business Survey 2006. RMIT University, Australia.
