Grafenia uses specific criteria to select the companies that we seek to bring into the “Grafenia family”. Businesses may be considered if:
- they have annual pre-tax profits of at least £250k (or the equivalent in other currencies) for each of the last 3 years;
- they are consistent profitable and have sustainable sales and strong cash generation for each of the last 3 years;
- the return on equity is greater than 10%;
- they have low, or no debt (unless debt can be strategically justified);
- their proven track record is defendable for the next 10 or more years;
- key management will remain in place or have viable transition plans for their exit; and
- ideally key management will have “skin in the game”.
We are sector agnostic and only interested in opportunities to realise value for our shareholders. We will acquire both private and publically traded companies geographically based in the UK or elsewhere.
We will look at acquisitions in the same, or a complimentary, sector to companies already owned by Grafenia. In such cases we will acquire these companies to integrate them into our existing group.
We will also look at acquisitions in unrelated sectors. In such cases we will bring these companies into the Grafenia family but will rely on existing management to continue day-to-day operations.