
Frequently Asked Questions
“The best managers figure out how to get great outcomes by setting the appropriate context, rather than by trying to control their people.”
We are always enthusiastic to learn about potential investment opportunities, but we understand the significance of valuing people's time. To assist you in evaluating whether we are the right investment partner, we have provided answers to some common questions below.
Why should I sell my business to Australian Equity Partners ?
We are backed by a well-capitalised and global investor base which means we have the financial capacity to close on a transaction with certainty.
We take a conservative approach to leverage; we will not put the business at undue risk of collapse by overleveraging, especially in today’s markets.
We are not private equity and we will only buy a single business which we intend to own over the long-term. We are fully aligned with making sure that your business, its employees, customers, suppliers and other stakeholders are taken care of.
We are flexible on deal structuring and can adapt to the individual circumstances of each owner.
Are you a Private Equity Fund?
No, we are not, and we have not modelled ourselves on their approach to ownership. We are long-term owners and are personally committed to only one business.
Do you have a preference for certain industries?
No, we are industry agnostic by mandate, however, we do have a preference for certain business models, for example franchising.
Will Australian Equity Partners acquire less than 100% of the equity in a business?
We are open to different structures on a case-by-case basis.
Will Australian Equity Partners acquire a business with EBITDA of less than $3 million?
Yes, while we typically require a minimum of $3 million of earnings, we will consider smaller businesses on a case-by-case basis where there is a high quality of cash conversion (capital light businesses).
What information do you typically require to assess an opportunity?
Three to four years of financial accounts and a few meetings with the owners is usually enough to establish a preliminary level of interest in progressing toward a transaction.
What are the due diligence requirements?
We typically conduct routine commercial, accounting, legal, and tax diligence, and may perform additional specific due diligence as needed for the business.