What We Are Looking For
SELLER PROFILE
They are typically owner-managers, family-owned businesses or senior management teams with a desire for any of the following:
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Retirement
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Liquidity
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Succession plan
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Management buyout
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Corporate divestment
FINANCIAL PROFILE
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Historical track record of profitability (at least 3 years) with stable margin
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Revenues of £3 - 15m
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Minimum EBITDA of c. £500k and margin of c. 10%
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Cash generative – low maintenance capex / working capital requirement
Grow Beyond...
About us
We are a team of experienced entrepreneurs and investors seeking to acquire and operate a privately held business in the UK (London, Home Counties and Midlands).
Our objective is to build on the potential of the business and create value through:
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Business expansion
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Operational efficiency
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Digitization
BUSINESS PROFILE
Every business is different. However, we look for as many as possible of the following key criteria:
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B2B businesses
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High degree of recurring/ repeat revenues
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Long standing and diversified customer base
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Scalability/ large end market
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Low exogenous risk
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Capable second tier management team
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Simple operations
INDUSTRY PROFILE
There are great businesses in every industry. We like interesting niche businesses in fragmented industries with growth potential and low exposure to economic and technological cycles. Examples:
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Technology enabled businesses
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Light manufacturing
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Healthcare services, Healthcare Tech
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Testing, inspection and certification
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Business services
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Industrials
Our Approach
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Honest and upfront - we will be open about valuations and what we can or cannot do
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Speed of execution - we aim to conduct most of our due diligence in-house. Our process is designed to be comprehensive and efficient and to provide as much certainty as possible
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Flexible on terms and structures - we can tailor our deal structures to accommodate sellers' cash and timing requirements, as well as any potential gaps in price expectations
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Focus on value creation - our entire focus will be on growing the business
Differentiators | BanyanTree | Private Equity | Trade Buyer |
Number of Acquisitions | Single. Focused Approach | Multiple. Portfolio approach | Multiple. Absorbed into corporate |
Value Creation | Hands on, build and grow existing business | Strategic oversight, financial engineering and cost cutting | Synergies and cost cutting |
Sources of Capital | Own funds, investors and operational advisors | Institutional (passive pension funds and insurance companies) | Public and private funds |
Goals and Exit Horizon | Long term growth. No predefined horizons | Maximize profitability. 3-5 years (restricted by fund life) | Institute parent company's strategy and culture |
Commitment | 100% full time management focused on development of the acquired business | Primarily board level involvement | One of many corporate divisions |
Employees | Continue to grow and develop | Secondary to financial return | Subject to redundancy |
Transaction and Deal Terms | Quick, flexible and focused | Complex, one of many transactions | Slow and inflexible |
Owner Tie-in | Limited to the hand-over period | Typically 2-3 years | Typically 2-3 years |
Team
Mahesh Chordia – Founder
Mahesh leads BanyanTree’s search phase and will be your single point of contact. Post-acquisition he will join the management team.
Mahesh has over 12 years of experience in Credit and Private Debt and has supported a significant number of businesses across a variety of industries including several SMEs (MBO, MBI, growth capital, and leveraged buyouts). Prior to this, he worked for Caterpillar Inc., where he helped develop and execute an India growth strategy. Previously, he was actively involved in his family business, executing growth strategies.
Mahesh holds an MBA from London Business School and is a qualified Chartered Accountant.
Raj Sood
Advisory Board
Raj is an entrepreneur and Founding Partner of Seronera Capital Partners, a family office that invests in private companies in the UK and Internationally.
www.seroneracapitalpartners.com
