INVESTMENT FOCUS 

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". 

Business Operators

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.

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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.