Approach
We target industries positioned to benefit from long-term drivers (income, aging, health/wellness, and convenience) and companies with a clear potential to extract synergies by executing M&As (by leveraging brand, distribution, and/or reducing SG&A). This focus enables our investments to have health organic/inorganic growth paths as well as potential to exit at a premium valuation to strategic players.
Additionally, by having clear-cut targeted industries, we can develop a thorough understanding about each of them and have a value-added approach with entrepreneurs since the first interaction, creating a differentiated angle when proposing a partnership.
Finally, our focus on middle market allows us to combine (i) vast amount of high-growth / profitable companies with (ii) proven business models with a low mortality rate and (iii) a shift from price-based negotiation to a value-added/collaborative approach when partnering with entrepreneus.
Criteria
Combination of top-down, long term drivers – Income, aging, health/wellness, and convenience – with Concept’s team track record.
- Branded foods & ingredients
- Human health
- Animal health
- Cosmetics
- Business services
- Technology
- R$ 8+ million in EBITDA
- Potential to unlock value by upgrading management, improving capital structure, accelerating organic expansion, and empowering consolidation
- Clear exit to strategic players at a premium valuation
- Passionate management team and entrepreneurs, with significant market knowledge
- Entrepreneur values Concepts’s role
- Brazil
- Growth equity
- Consolidation
- Management/owner buyout
- Sponsor-to-sponsor
- R$ 50+ million in equity investment
- Shared control and governance
- Entrepreneur is a relevant shareholder and the Company represents a significant portion of his/her net assets
- Potential to 4x – 5x MOIC
- Exogenous, binary, and regulatory risk
- Greenfield, distressed assets or start-ups
- Excessive governmental exposure