Mature, cash generative businesses wanted – (Ref. RSS/RH)

Fast growing Group wishes to acquire mature, cash generative businesses and to hold them in perpetuity, re-investing cash flow in acquisitions or distributing it to the Company’s shareholders. The Group intends to remain private and has no “exit” strategy.

·         Annual operating profits from a minimum of £200k (for an asset purchase) or £500k (for a share purchase) up to a maximum of £5m operating profits p.a.

·         A history of generating profits and cash flow over a sustained period of time (at least 3 years, ideally over 10 years)

·         A strong, ideally dominant, market share in its particular niche

·         No over-reliance on a single customer or a small group of customers

·         Operational management who come with the deal, unless the business is simple or a good fit (including in terms of location) with the Group’s existing businesses

·         Consideration given to businesses suffering from slow growth, no growth or gentle decline

·         Not focused on a particular sector or type of business and do not mind where it is located (so long as good operational management come with the business)

·         Can incentivise existing management with equity

For software businesses:-

·         The software is mission critical to its customers

·         The business has significant recurring revenues