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Invest
where the prospects for growth are exceptional due to the
confluence of unfolding regional realities and sectoral
dynamics:
- Rapidly
growing markets, brands established economically (less
crowding and/or low promotional costs), franchises
obtained
- High-margin
products (branding and/or low absolute prices, low
capital intensity, low marginal costs), economies of
scale/scope
- Regional
technologies & applications with potential to
dynamically penetrate advanced markets in the
West
- Western
technologies & applications whose integration in
regional businesses can create expanded growth
potential
Pay
attention to small- to medium-size enterprises:
- Applying
proven business models/technologies to new markets
(low specific business risk, first mover
advantage)
- Can
expand to several of the national markets in the
region
- Short-term prospect of
significant growth in revenue & profitability
A proposed investment must involve:
- A strong and balanced management team, of high integrity and with a proven track record in the industry segment, which wants to build a highly profitable and dominant company
- A potentially large and dynamically growing market, with clearly identified customers and distribution channels but no dominant competitor, where large shares can be gained, lasting brands established and high margins sustained
- A new or innovative product, technology or service, which can better satisfy existing or new market needs, for which significant differential advantages exist or can be built and sustained, and which can exhibit economies of scale and/or scope in its provisioning
- Early positive cash flow and visible exit paths, which can lead to realization within three to seven years at substantial multiples of invested capital
- Alignment with the management team of the proposed venture on corporate goals and expectations, as well as on methods of implementation and exit
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