Investor

Sector Size

The numbers 148,000 and 227,000 should excite you if you are interested in Australian SMB opportunities. According to the ABS those are the numbers of businesses with turnovers of $2m-$10m, or 5-19 staff respectively. Some good ones will be needing new owners and managers!

Investor

Sector Competition

Is Legacy Growth Capital a catchy enough name for the Goldilocks zone in the Australian business equity tapestry that allows for fair value creation for patient investors, current owners, and employees under a small business buy, hold and grow approach?

Investor/Owner

Optimizing Value

Realizing a small business valuation multiple kick is easier said than done. We know there is value in reducing staff turnover, improving EBITDA, sales growth and recurring revenue, but how much? As a future or current small business investor/owner we can quantify the investment value.

Investor/Owner

Reducing Risk

The risks and opaqueness for direct investment in the SMB sector in Australia mean that good businesses are discounted to the point where they are no longer attractive or worth the effort. 

Some opportunities in the market make overcoming these hurdles through building systems, standards and processes that can be scaled across a portfolio of opportunities worthwhile. 

That's what Ogilvie Street Ventures is doing.

Investor

Diversify into SMB

Here’s a conceptual graphic validating why one might consider looking at SMB permanent equity along with Angel, VC and PE opportunities. It helps quickly articulate the diversification benefits and trade-offs.

• Similar or better returns

• Growing income accumulation over capital appreciation

• Longer investment horizon

• Few carefully selected targets

• Stable longevity over youthful exuberance

Investor

Investor Profile

We are building a panel of aligned investors to coinvest (on  a case-by-case basis) into a portfolio of stable, income generating small and medium businesses for long term cash generation. Aligned in this context means, income seeing, moderately risk tolerant investors with check size capacity of between AUD 200k and AUD 3m wiht a long term investment horizon.

Investor

Returns and Exit Paths

1. Theoretical distribution yields can vary between 14% and 27% depending on how we sustainable finance the acquisition, reinvest earnings, and when and how we extract value through refinancing.

2. Through refinancing, we can engineer an exit (under duress) for individual investors  once the alternative options (E.g. sale to a new shareholder or sale to an existing shareholder) have been exhausted.

Investor

Investor FAQ Word Cloud 

What’s the investment mandate? Evergreen Australian SMB with reliable distributions for income growth

How does one  exit?  Through defined liquidity events driven by secondary sales and asset recapitalisations;

How long can one remain invested? Patient, long hold, open-ended, permanent capital;

What assets…..

Business Owner

SMB Operating Models

An operating model is just a collective term for the elements needed coordinate (and control) the functioning of a business to allow effective and safe production of a product or service without actively engaging with every person or group, all the time.

So really its primary purpose is to  allow effective operation at a “distance”. (E.g. During a shift when you are not present, or in a location some distance away.)

In this 4 minute clip (which can comfortably be played at 1.5x) we show that SMB operating models are similar to the way other social structures like religous groups, sports clubs or unions are run, and that there are simple to deploy models available.