How we do it
Globalization and regulatory changes are providing challenges across the whole of the business environment and today's rapidly changing marketplace demands inspired yet practical solutions. The Scaent Group can provide unique solutions to most of the business challenges that may be presented now or in the future.
In the initial phase of any project, we start by building trust through our direct personal relationships with leading personalities in business, and where appropriate, government. The local political conditions are analyzed and risk is assessed. If the decision is taken to invest within the target sector and market, we enter into selected partnerships, joint ventures or other business structures and work openly with local businesses and entrepreneurs to enhance our unrivalled reputation for transparency and fairness. The Scaent Group can then add significant value to the enterprise, by utilizing our expertise in the areas that the existing businesses may find difficult, for example, lack of access to markets, supply of raw materials or capital for investment.
It is widely known that conducting business in emerging markets often carries significant risk. Our policy is to manage these risks aggressively, which in turn minimizes our exposure in the business model. We will normally look for businesses that are driving growth and have high value innovations, which can conceivably be transferred to other markets. We like to work in partnership with experienced, capable management teams who wish to grow their business rapidly and target entrepreneurs and teams that have the capability and endurance to build strong performing companies within a relatively short timeframe.
The Scaent Group is actively seeking to invest in companies that reflect the following characteristics:
- Minimum annual revenues of €1.5 million
- Target EBITDA margins of 10% or more; we will consider companies close to positive cash flow
- Significant growth potential
- Demonstrated competitive advantage
- Defensible market position
- Proven management team
- Within our preferred industries
- Energy industry
- Construction Industry
- Utilities and Public Services
- Real Estate
- IT Industry
- Value-added manufacturing
- Production of Construction Materials
- Raw Material Prospecting
- Consumer Goods and Retail
- Telecommunications
Our investments typically:
- Range from €1 million to €100 million, up to €250 million completed with co-investment partners
- Are in the form of preferred debt, but we can also provide subordinated debt
- Assume that a favourable exit within three to five years
- Provide us with representation on the board of directors
- Involve buyouts, acquisitions, growth capital and recapitalizations
We embrace the leadership role in our investments, and we also welcome the opportunity to partner with other value-added investors. Our investment parameters are designed to be flexible, and we will invest in both control and minority equity situations. We are confident that we can develop a structure for our investment that supports our management partners’ objectives.
When looking at a potential buy-out investment, we look for companies that have solid and recognized market positions, with the potential to expand into new markets. Our central location and network of established agents allows us to support any such enterprise comprehensively.
We are interested in buy-outs of businesses with revenues of over €5 million or which are growing significantly. The Scaent Group can potentially invest between €1 million - €50 million in pre-profit companies. To provide investment to this degree we are looking for convincing evidence to reinforce the projected success of the predicted growth of the business.
We are very discerning in our investments and are likely to invest only in a small percentage of those that we have researched comprehensively. By positioning one of our key individuals as project leader, we have the ability to interface seamlessly with the boards of all the businesses within our portfolio.
Our function is to provide expert resources, either from within our company or from our network of advisors, by utilising our expertise in the areas that the existing businesses may find difficult, for example, lack of access to markets, supply of raw materials or capital for investment. We always aim to provide to the business the greatest possible chance of success.
The Scaent Group are a long-term partner in any investment project, but inevitably we will sell our stake in the company in order to return funds to our investors. We endeavour to exit at the most favourable time for all parties concerned and by means of a process that corresponds to the strategic goals.
| «Why We Do It« |