KPIO invests in SME and micro-cap businesses that require growth capital or need restructuring. Our focus is on strong franchises with predictable revenue and earnings growth that generate high levels of free cash flow and attractive returns on invested capital.
Smaller companies not only represent the largest share of Australian economic output, they are often the fastest growing as well. The Kelly+Partners accounting network services 5,300 SME businesses which puts us in a strong position when it comes to assessing business models and finding investment opportunities.
In many companies, the most important assets are the intangibles:
culture and values
the people - founders, owners, management, employees, and counterparties
operational processes and systems
customer and supplier relationships
intellectual capital and proprietary knowledge
We invest in businesses with existing strong operating management teams in place. However, if needed, we have experience in attracting new managers to supplement or replace existing teams.
Given the broad commercial experience of our team, KPIO is in a strong position to assess the complex issues often presented by investments in smaller businesses, including:
industry analysis and growth opportunities
corporate strategy and competitive advantage
business model and cost optimisation
operational and financial structure
management skills and experience
expected return on investment
KPIO has a target investment size in the range of $0.5 million to $3 million per transaction, however it may invest a greater amount depending on the investment opportunity.