Our Investment Philosophy
There is no shortage of founders with great ideas, and there is no shortage of businesses with potential that are seeking funding.
There is also no shortage of available capital both as equity and debt.
But there is a major shortage of great businesses achieving their financial goals and growing in harmony with their investors and funding partners.
As a team who have grown, raised funds for and exited our own businesses, as well as doing so as an investor, we have experienced this disconnect first hand and from both sides of the table. So we now believe we have a clear understanding of the problems and a perfect solution in our model.
The Problem
- Founders & business owners need help to scale.
- They need support to understand their numbers, build and execute a growth strategy and find the right talent to expand their team.
- Knowledge is expensive, and the RIGHT knowledge is hard to come across.
- Access to quality financial management, talent sourcing and marketing expertise all require deep pockets and extensive networks.
- Capital, whilst obviously important, can only go so far
- Often the most common challenges faced by business owners aren’t solved by spending cash. Getting the right advice and support from an experienced entrepreneur is priceless.
- Founders struggle to find the RIGHT investor
- Exiting a business successfully isn’t easy. Finding the right buyer and agreeing the right price takes extensive research, market understanding and a brilliant network.
The Solution
MHG have created a unique investment model to support founder led businesses. We invest both debt and equity AND provide a platform of services to help the business scale.
Source
We source off-market investment opportunities to deploy capital into scalable businesses that are within our team's areas of core competence. profitable, scaling companies. Initial investments typically range from 100k to $500k and can be for a minority or majority position.
Strategy
We conduct a deep dive review on the business and create a clear 12 month plan with a more granular short term set of objectives to kick start growth. Working in partnership with the company, we build a 3-5 year exit strategy with clearly defined milestones.
Scale
Once capital has been invested, we provide 360 degree umbrella support to accelerate growth. Our team of industry experts become an extension of the business’s team, helping with everything from mentorship, strategy, marketing, data & analytics and financial management.
Structure
As the business scales, we work to recruit the right talent. This enables the business to establish its own stand-alone team, removing the reliance on MHG and increasing their own enterprise value.
Fund
The growth trajectory is likely to require further funding above our initial investment. If appropriate we will invest further capital of our own, but it is usually at this stage we work to bring in 3rd party funding and offer the opportunity for our investor network to participate in debt and equity offerings.
Exit
Working alongside the leverage of our extensive network we work to find potential acquirers or structure alternative exit routes. Our focus is on driving a market leading exit valuation, generating a greater return for all shareholders.