Identifying the “Gems”
The Manager intends to strongly adhere to a methodical deal sourcing, transaction execution and deal closing process. The first screening has to be effective in finding the “gems”. The members of Dutch Expansion’s Investment Team consider thorough analysis and due diligence processes followed with efficient transaction execution to be crucial.
The team feels that the most compelling companies in terms of risk/reward profile are companies with a limited customer and/or supplier concentration and carry limited technology, regulatory or “hype” risk. Capital is allocated to fuel growth to the company, not to “exit” existing shareholders. Funding is linked to achieving milestones. At least two years of being cash flow positive is preferred. Typical equity investments range from €2.5 to €15 million with enterprise values between €2.5 to €25 million.