Company Criteria

Companies with incentivized, talented, committed and proven management teams.
Strong, reputable and aligned equity sponsor of reference.
Substantial shareholder/management “skin-in-the-game”.
Solid track record of profit history and historic cashflow generation.
Sustainable, stable, predictable and strong cash flow generation with manageable capex needs and limited working capital requirements.
Typically generate minimum EBITDA of R25m;
Flexible cost structure, pricing power, healthy gross profit and EBITDA margins.
Conservative financial leverage – with acceptable leverage ratios (i.e. typically not exceeding 4,5x Debt to EBITDA multiples).
Prudent capital structures that can withstand a range of business cycle conditions
Well-developed internal controls, systems and strong financial discipline.
Established and stable market with hard to replicate competitive positioning and high barriers to entry.
Diverse mix of products, customers, suppliers and geographic markets.
Differentiated product lines with extended life cycles and low obsolescence risk.
Low threat of technology substitution.

Established mid-market or large companies.

Track record and Profit After Tax greater than R50 million.

Experienced management with performance based financial incentives.

Minimal or manageable technology risk.

Product lines with extended life cycles and low obsolescence risk.

A diverse mix of products, customers and suppliers.

Stable demand for products or services and a defensible market position.

Sound historical financial performance and/or stable, predictable earnings and cash flow.

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