Investment criteria

GEOGRAPHY AND SECTOR

We are looking for a Scottish based business and are not restricted by sector. We like to focus on companies in the following types of market:

  • Traditional industries with established markets and proven demand - market sizes of c. £100m+ in Scotland and £1bn+ in the UK
  • Industry growth of between 1% and 5% annually
  • Fragmented markets with many smaller competitors

BUSINESS PROFILE

When assessing opportunities, we typically look for the following characteristics:


  • Turnover between £2m and £10m
  • Net profit margin greater than 10%
  • Proven recurring revenue over the last 3 years
  • Low customer concentration with no single customer making up more than 25% of turnover
  • Good brand name in the market

OWNER PROFILE

We want to work closely with the owner and the management team to ensure a smooth transition. As such, we like to see the following:

  • The sale is triggered by retirement and / or a management buyout 
  • The owner is less involved in the day-to-day running of the business
  • There is a capable and ambitious management team in place
  • The owner is open to a 6 - 12 month transition period, post sale