Our Investment Approach

Accion Capital’s principal investment objective is to seek medium-term capital appreciation through investments in companies with high growth potential and where there are opportunities for Accion Capital to work with them to grow into thriving and sustainable corporations. 

The potential upside for our investments will come from the successful implementation of two primary strategies: (i) providing the necessary growth capital and (ii) providing operational, business development, strategic and financial direction to the investee companies. This potential upside will be realised through a clear and well-defined exit strategy.

Investment Criteria | Investment Process

 

Investment Criteria

Accion Capital will invest primarily in growth, mature or near mature companies with the following characteristics:

  • possess strong fundamentals, competitive advantages, sustainable and expandable business
  • potential to be the leader or one of the leaders in its region or product area, whether through organic growth or mergers & acquisitions 
  • cash flow generative
  • focused management team with well-defined business plans, aligned interests, integrity and track record

The preferred industrial segments for investment are related to Accion Capital’s prior operating experience, industry knowledge and network of relationships, including but not limited to the following industries:

  • Technology
  • Healthcare
  • Natural resources-related services and infrastructure
  • Renewable energy and environmental protection
  • Hospitality & lifestyle
  • Education
  • Logistics
  • Consumer-related

 

Investment Process

  1. Identify Business Contacts & Sponsors 
  • Network of industry and Accion Capital’s contacts
  • Intermediaries
  • Advisory Board recommendations
  • Sponsors
  1. Evaluate Business & Market Potential
  • Quality of business and management team, historical performance and future prospects
  • General market and  industry sounding
  • Reference/ background checks
  • Potential for Accion Capital to add value
  • Preliminary valuation, return and risk analysis
  • Exit potential
  1. Execute
    Investment Strategy
  • Commercial, legal and accounting due diligence
  • Financial analysis and modelling
  • Field research
  • Negotiation of final terms
  • Transaction documentation
  • Investment reports to Investment Committee
  • Risk mitigation procedures
  1. Post Investment
    Support
  • Board/Observer Position
  • Implementation of strategic plan
  • Identification and execution of M&A
  • Proactive value-add in operations, business development and practices
  • Risk management reviews
  • Review of periodic management reports, budgets and other financial information
  1. Analyse
    Exit Options 
  • Exit Analysis
  • Trade Sales
  • M&A Transactions
  • Public Offering
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