Sector Focus

Although we assess every investment individually, the following are key fields of interest:

• Engineering
• Food processing
• Energy
• Special chemistry
• Biotechnologies
• Ecology
• Packaging
• IT, ICT, Internet
• Media and telecommunications
• Other

Size and Time Horizons

• Average amount of particular investment ranges in hundreds of thousands to tens of millions EUR.
• In investments ranging in tens of millions EUR we are able to syndicate with a regional partners.
• Average time horizon of investment is 3 – 5 years.
• The investment time frame can be adjusted based on individual aspects of the transaction.

Based on the volume of investment capital and the size of our company, our most frequent partners include business entities from the small and medium size companies sector.

Form of Investment

• Entry into registered capital
• Investments in the form of convertible loans
• A combination of both
• Purchase of assets
• Purchase of receivables

Invested financial resources carry know-how, which is transferred to entrepreneurs in the form of professional experience of the investor. It is the principle of “smart-money” – setting of management control, planning and strategic development, setting an optimal capital structure, cash flow management and working capital management.

Investment criteria (what is being primarily considered)

• Business plan
• Growing potential
• Experience and determination of the management team
• Market potential
• IRR
• Options and forms of exit (sale of owned share)

Valuation methods

We are considering each investment project in two steps:

Before signing the Term Sheet
We apply simplified evaluation approach at this stage in order to be adequately effective and flexible. We evaluate mainly the management team, market potential and expected cash flow of the firm. Applied valuation methods at this stage include relative valuation method (market and transaction) and method of discounted cash flow (FCFF – Free Cash Flow to the Firm). The result of this valuation is an indicative offer and proposal for further advancement.

After signing the Term Sheet
Once the basic principles of cooperation are agreed on, the Due Diligence process is commenced, where we confirm the already gathered information and we analyse the investment project in further detail. We use the discounted cash flow to equity method (FCFE – Free Cash Flow to Equity) and iteration models to arrive at our binding offer, whose outcome include complete financial reports in full extent.