What we are looking for.
Our mission is to identify and invest in robust businesses, while also providing strategic guidance and operational support to help these businesses reach their full potential. We take a long-term approach to investing, with a focus on building value over time through strategic planning, operational improvements, and targeted capital expenditure. Slow and steady wins the race.
We analyse each business on its individual merit. Typically though, we seek businesses with the below criteria. As no two businesses are the same however, we often see incredibly attractive opportunities that are missing some - or even many - of the below attributes.
-
Well Established.
We prefer businesses that have been established and trading for a minimum of ten years. This length of time operating usually indicates a level of stability of demand. Further, a long established business has infrastructure, processes and foundations that can be used as a platform for growth.
The older the better!
-
Culture & Values.
A company is only as good as its people and the culture that underpins it. A passionate team who are happy in their workplace and working towards a common goal are a force to be reckoned with.
Customers can feel this energy and over time this leads to a business’ greatest intangible asset, its reputation. We hold the utmost respect for hard-won reputations and go out of our way to uphold them.
-
Historic Revenue Continuity & Profitability.
We understand that revenues and profits fluctuate, but we like to see numbers that tell a story of consistency, steady growth and stability. Extra points for reliable and contracted revenues to secure customers.
Yet as we all know, revenue is vanity and sanity is gained from profitability. Consistent margins and control over operating expenses is what really gets us going.
-
Strong Management Team.
To ensure success and continuity after completion of the transaction, it is important that the staff who manage and execute the day-to-day operations of the business are well established and highly capable. If the owner of the business is the Managing Director (very common), we would work together to ensure a suitable replacement is promoted from within or externally recruited and trained.
-
Growth Opportunities.
Compound Ventures buys businesses to grow them and we love businesses that present unlimited growth opportunities.
Typically, the existing owner knows exactly what their business needs to get to the next level, they just haven’t had the time, team or capital to make it happen. This inside knowledge, combined our expertise, creates a formidable partnership that has led to robust growth - and further upside for owners - across several sectors.
-
Motivated Sellers.
We are motivated buyers and we want to work with equally motivated sellers. Perhaps you’re ready to retire, to move onto other projects, or you’re thinking ahead and planning for the future.
Deals get done when both parties truly want to complete.