Realise The Power of Private Equity and Alternative Investment

Given the long-term nature of the investment strategy of these funds, they are considered a ‘safe pair of hands’ for companies that are sold into them, with cultural alignment being a focus for the acquiring fund. For shareholders keen to protect their company’s future and ensure its culture remains unchanged, long-term investors are an interesting option. Companies that are acquired usually remain de-centralised and operate as standalone entities, often with little involvement from the fund beyond centralised financial reporting. This gives the shareholders, who may stay with the company for a period of time, the opportunity to continue to grow the business. WHY WOULD A LONGER-TERM FUND BENEFIT A COMPANY OWNER?

Criteria for long-term investors:

+ +

Strong EBITDA margins – typically greater than 15% A track record of continuous, steady growth

+ Cash generative – cash profits are utilised to fund future acquisitions + Defendable positions within their sector, typically niche operators

WHICH LONG-TERM INVESTORS DO KBS WORK WITH?

Industrial groups from Scandinavia, particularly Sweden, have been notably active in the market over the last few years. Among those with which we have developed strong relationships are Storskogen, whose first UK acquisition we facilitated with the sale of S G S Engineering, and they returned to us when adding AC Electrical to their portfolio two years later in 2023. Even more prolific are Teqnion, whose acquisition of Merridale in February 2025 was their seventh through KBS within 21 months, following Stanwell Group, Surge Protection Devices, Nubis Solutions, Avelair, UK Lanyard Makers and Awarded 2U.

LONG-TERM CAPITAL FUNDS HIT A RECORD HIGH OF $350BILLION IN 2024

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