News

The global financial crisis has had, and will continue to have, a substantial impact on business valuations; we’re starting to see changes in vendor terms of negotiation and expectations of price. Business owners looking to sell before retirement are taking lower multiples or are deciding against retirement and are instead remaining with the business.

We are currently working with our portfolio companies to look at opportunities for interstate and international expansion. Doing this now, in the current climate, means that we may have access to better, more-experienced management teams than we would otherwise.

For investors in a fund like ours this makes for a positive environment in which to take stakes in well-run businesses where the former owner may be remaining with the company in a management role. This is a good time to work internally on a business to grow market share and establish the business as a leader when conditions improve.

You don’t make money by buying at the top of the market. This is important to remember when being bombarded by negative messages from the mainstream press. Many potential investors have been deterred from taking the step, but now really is the best time to invest.