Investment Criteria

Criteria

In our research we aim to understand a target’s financials, market position, industry trends, and debt financing options available.

We seek to acquire business in silos/sectors according to our investment criteria. In general, the Value Matrix we apply is based on, but not restricted to:

Strategic Fit
Turover / Profit / Cash generation
Comparable Analysis
Historical Financial Performance
Deal Flow
Speed
Scale
Individual circumstances
Deadlines
Required minimums
MnA activity in the sector
Predictable future cashflows.
Volatility of cashflows
Risk / exposure
Assets (plant/machinery/property)
Intangibles (Trade marks / goodwill)
Clients (Caliber / Density)
Strong management team in place /no gaps / work well together
Non dependence on owner’s skills
Geographically headquartered in Australia
B2B customer base
Recurring Revenue percentages
No major issues pending
Complies with ASIC / regulations / legislation

Other valuation considerations:

Net Book Value
Entry Valuation
Discounted Cash Flow