Step-by-step guide through our assessment, offer, due diligence and completion process.
We have analysed and invested in hundreds of companies, both public and private. We know what works for us and can accurately assess our likelihood of investing early on.
Every business is unique and we have learned to zero in on the important elements of each situation. Only a shortlist of key questions genuinely matters. We don't focus or waste your time on the trivial.
In fact, we thrive on them. We prefer niche businesses and look for unusual business models. It keeps our life interesting and often makes for good investments.
Business reflects the character and values of the owner and founder. It is important to work with people we like and respect.
We don't play games. We don't low ball. We don't waste your time. We understand good vendors have options (we are business owners ourselves) and we make the best offer we can.
We are constantly looking at investment opportunities. However, once we sign and agree on an offer, we hold off all other opportunities. This ensures certainty to the vendor and helps us avoid conflict of interest. This means our offer can only be outstanding for a short time.
The principals backstop every investment. We do not require external financing. If we do, we make that very clear on our term sheet. This ensures deal certainty and is only fair for everyone.
What the principals say "goes". As our capital is permanent, we do not need external or investment committee approval on our decisions. This allows us to be responsive and move quickly.
We try to work with the individual needs and requirements of each vendor. Please speak up so we can prioritise what is important. For example:
The role of due diligence is to confirm the accuracy of financials and operations. We don't view this as an opportunity to renegotiate; nor do we see this as an opportunity to 'kick tires' or 're-think' our decision.
Our due diligence is confirmatory, we can keep our process short and focused.
We oversee the documentation ourselves and endeavour to be fair and commercial on legal aspects. Our documentation follows market standard terms. We don't get bogged down in the legal details.
We are not strategic buyers and have no 'cost synergies' to enforce.
We have no intention of changing the way things work. The business is successful for a reason and we would like to keep it that way.
Our capital is permanent. We don't seek to 'flip' or exit a business. We buy with the view of managing and owning for the very long run. We make decisions with the business' long term interest in mind.