We are an emerging market advisory and investment firm based in Johannesburg, South Africa. We provide sell side and strategy 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%.
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.
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.
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.
Lower mid market is an asset class and a segment of businesses that is known to deliver above average median returns, but that have unavoidable challenges associated with their life-stage and are currently under-served in most markets. 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.
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.
May need to to adjust its operating model to enable it to play in the lower mid market space effectively.
May need to expand its asset structure or optimise its existing asset base.
May need new skills, managerial slack, directors and advisors to enable it to operate in the "mid market" zone.
May need outside money to fund one or all of the above.
May for the first time face "non market risks" or have to navigate the "non market" landscape.
