Masters of the lower mid market
Break out of ambiguity and grow revenues, operating profits, ROIC and Free Cash Flow to Equity and manage non market risk.
Who we are & what we do
We are an advisory and investment firm based in Johannesburg, South Africa. We provide sell side, strategy and value creation advisory services. We also take equity positions in lower mid market owner managed businesses with potential for growth and social impact that generate an EBITDA margin of +20%.
Advisory
Sell Side
We help you sell your business and prepare those that are not ready yet, for sale. This includes those whose EBITDA margins, growth rates or free cash flow to the firm are not attractive to potential buyers yet.
Invest
Money, Time, Expertise
Our investment sweet spot is "owner managed" lower mid market businesses with revenues of R40 Million and EBITDA margins of +20%. Additionally, our relationship with an “on balance sheet” PE firm that allows us to make a selective play for mainstream mid market.
Strategy Services
We provide value creation services; strategy and marketing to PE firms, their portfolios and our core target segment, lower mid market owner managed firms. We also provide "non market strategy" advisory to all businesses.
Why the lower mid market?
Lower mid market is an asset class that is known to deliver above average median returns. Businesses in this segment have \"mission critical\" challenges associated with their life-stage. Lower mid market businesses have grown past \"start up phase,\' but have not attained permanent residence status in the lower mid market. To gain \"permanent residence status,\" lower mid market businesses need to make one (1) or more of the six (6) adjustments outlined below. Wrong choices or mis-timed moves could see them slip back into start up mode or in a worse position. Despite this, these businesses are currently underserved and do not have a dedicated ecosystem serving them, the same way that \"start ups\" and \"middle market\" firms have.
Market facing
May have outgrown its "start up phase" early markets and may now need to "cross the chasm" or may have business concentrated in the hands of certain customer types.
Operating Model
May need to to adjust its operating model to enable it to play in the lower mid market space effectively.
Asset structure
May need to expand its asset structure or optimise its existing asset base.
People
May need new skills, managerial slack, directors and advisors to enable it to operate in the "mid market" zone.
Money
May need outside money to fund one or all of the above.
Non Market Risks
May for the first time face "non market risks" or have to navigate the "non market" landscape.
