Focus: Private businesses with a history of consistent profitability and free cash flow generation; able to grow without requiring significant capital
Sectors: Particular focus on business services, but we will review most
opportunities that involve a profitable and growing business in an
attractive market sector
Size: Lower mid-market, typically $4m - $8m EBIT
Location: Australian head office
Type: 100% acquisition or a controlling shareholding alongside family or management owners
Exclusions: Turnarounds, start-ups, primary agriculture, construction or property
WHY PARTNER WITH US?
Merchant Place Investments was founded by an experienced team that loves building great businesses.
The executives and owners we work with tell us that we're different from traditional private equity investors in four main ways:
Low or No Debt
We don't gear up our partner businesses with aggressive debt. This reduces risk and helps the team sleep well at night. It allows cash flow to be used to fund growth or shareholder dividends.
Long Term Approach
We're ambitious for our businesses, but balance this with a long term mindset. We may be owners for many years, so we have no interest in short term thinking or "putting lipstick on a pig".
Our culture is shaped by a love for getting involved in business operations. We are first and foremost business builders, rather than financial engineers or fund managers.
Informal + Professional
We run our own firm based on partnership, integrity and transparency. We enjoy each other's company. We take our work seriously, but not ourselves.
HOW WE CONTRIBUTE
We are active and hands-on investors. We pride ourselves on working closely with management teams and fellow shareholders to help build great businesses.
While we are not part of day-to-day management and are careful not to second-guess the team or get in the way, we're usually able to contribute in the following areas:
Accessing additional capital to fund growth
Setting strategic direction and ensuring focus on key opportunities
Providing a catalyst for change
Encouraging a growth mindset and a willingness to take risks or experiment
Building the management team's depth and capabilities
Structuring team incentives to attract and retain talent and ensure alignment
Supporting growth initiatives, including bolt-on acquisitions, new market entry, new products or strengthening the business development function
And down the track, achieving a value-maximising exit for our investors and our fellow shareholders, whether through a trade sale, a secondary, a recap or an IPO.