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Investment Criteria
Attractive investment
opportunities will satisfy many of the following criteria:
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Sector: |
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Software, IT Services, Internet,
Back-Office / IT Outsourcing; and/or
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Service
providers to growth sectors in the economy, including
healthcare, energy/utilities, life sciences, high-tech
and business services; and/or
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Opportunities where information
technology can be leveraged to generate significant
bottom-line business value.
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Industry: |
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Growing industry or industry with discernible
opportunities for growth and value creation;
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Minimal
exposure to risk from technological obsolescence,
regulatory shifts or environmental liabilities;
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No
single, dominant competitor;
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Low
capital intensity;
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High
switching costs.
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Company: |
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Owner-managed companies and/or non-core corporate
divisions in leadership or growth position within
industry or market;
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Defensible market positions and/or competitive
advantage;
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Outstanding reputation with customers and suppliers;
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Diverse
customer base with high retention rates.
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Financial: |
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Between
£5m and £20m in annual revenue;
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EBITDA
margins of 15% or higher;
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Three or
more years of consistent profitability and recurring
revenue streams;
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History
of positive, stable cash flows;
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Low
ongoing capital expenditure requirements.
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Management: |
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Motivated sellers, including retiring owners, family
businesses and corporations seeking to divest non-core
assets;
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Owners
willing to participate during the transition period;
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Experienced and highly motivated middle management
planning to remain with the company.
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Geography: |
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Abacus Partners welcomes the opportunity to provide an
attractive exit to the owners of enterprises
that meet these criteria.
To download a one-page overview of Abacus Partners
and our key investment criteria, please
click here.

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