We will pick up the baton from successful entrepreneurs
Acquisition capital and leadership for your legacy and the long-term success of your business Contact usAbout us01
Our Goal
The SMGO team searches for only one Czech or Slovak company to acquire from the current owners, operate in person and grow it in the long run. We want to build on the success story of sellers and personally participate in its continuity after their departure from business. Our goal is a thoughtful succession, satisfaction of all parties involved, ethical entrepreneurship and long-term sustainable growth.
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Our Approach
We are neither Private Equity nor strategic investors. We are not searching for another item for our portfolio, a quick profit or an aggressive leverage. SMGO is a team of young entrepreneurs with experienced entrepreneurial partners across industries, functions and geographies, with a long-term investment horizon. We will focus on acquiring, running and growing one single company and tailor the handover process to its seller’s unique situation.
Succession Crisis
Based on Eurostat, Czechia and Slovakia are the EU countries with the highest concentration of SMEs. At the same time, up to 70% of them do not have the issue of succession solved. Globally, the “30/13/3 ratio” is usually recognized, ie. 30% of companies survive the first generational exchange, 13% second and almost none survives the third one. We believe that search funds run by motivated and experienced entrepreneurs can help to alleviate this crisis.
About
First Traditional Czech and Slovak Search Fund
SMGO is one of the first search funds in Central Europe and the first traditional Slovak and Czech search fund. We are a group of experienced operators, entrepreneurs and investors focused on the lower-middle markets across the local geography.
more than two hundred years of combined experience
more than fourty mil. € of acquisition capital ready for deployment
experience from over hundred acquisitions across Europe and globally
Why Sell to Us?
Flexibility
Unlike other investors, we will adapt the transaction to the succession plans and needs of the seller so that the long-term success of the company is taken into account as much as possible. Our goal is the long-term satisfaction of all parties involved.
Focus
After the acquisition, we will invest all our time and energy into one company. It will not become another company in the portfolio, or a support branch of another business. Our team will be personally present in the entire process of acquisition and management of the company.
Patience
We choose entrepreneurs whose story appeals to us and we would like to continue in it for many years to come. We will not change core values, name, or employees. Our team knows that success cannot be built in a day and all our partners share these values.
Growth
We will bring new energy, experience and a broad international network of partners and professionals. Our focus is primarily on growth, not on financial engineering or cost-cutting. We operate in an ethical manner and aim to drive positive value creation in a local community.
SMGO vs. Private Equity and/or Strategic Investors
Private Equity
- Goal of the Buyer
- Seller's Vision
- Seller's Future
- Value Creation
- Capital Source
- Terms and Conditions
- Time Horizon
Adding a diversifying business to a large portfolio, then continue searching for another
Not considered
Obligation to stay or leave based on buyer’s decision
Cost-cutting, financial leverage, exit
Pension funds, institutions, banks, passive EU funds…
Standard T&Cs
3-5 years
- Goal of the Buyer
- Seller's Vision
- Seller's Future
- Value Creation
- Capital Source
- Terms and Conditions
- Time Horizon
Focus on one company and its long-term success
Preserved
Flexible, tailored to the seller and the company
Long-term topline growth, geographic expansion and operational excellence
Successful entrepreneurs, professionals and investors across functions and geographies
Tailored to seller and company
Long-term
Strategic Buyer
- Goal of the Buyer
- Seller's Vision
- Seller's Future
- Value Creation
- Capital Source
- Terms and Conditions
- Time Horizon
Acquisition target supporting the larger corporation.
Changed to the vision of the buying conglomerate
Obligation to stay or leave based on buyer’s decision
Cost-cutting of redundant employees and assets, synergy exploitation
Business cash-flow, private or public debt…
Low flexibility
unknown
Search Profile
Three key criteria
- High share of predictable, recurrent revenue
- Company operates on the growing and fragmented market
- EBITDA above EUR800ths. and EBITDA margin above 10%
Company
Stable resilient business based in Czechia or Slovakia
- Stable, fragmented customer base
- Resilience against economic cycles
- Low CAPEX requirements
Seller
Motivation to sell and to ensure the company’s long-term success
- Ready to sell 70%+ of the business
- Positive stakeholder relationship
- Integrity and ethical value creation
Industry
Stable, growing and fragmented. Three indicative examples:
- B2B software and services
- Tech-enabled outsourcing
- Niche manufacturing
Financials
Stable and profitable at least for the last three years
- EUR800 ths. – 4mil. in EBITDA
- >50% FCF/EBITDA conversion
- >10% EBITDA margin
Our Team & Partners
Interntship ApplicationTomáš Zbyňovský
Managing Director
Grant Liversage
Partner
Tobias Raeber
Partner
Jiří Prokop – CHI Partners
Partner
Jan Simon – Vonzeo
Partner
Bill Egan – Marion Equity
Partner
Mark Egan - Marion Equity
Partner
Viren Lala
Partner
Simon Bores Llanos
Partner
Jose-Maria Clotet
Partner
Ignacio Olavarría
Partner
Omer Ben Shach
Partner
Enrico Arietti
Partner
Ambit Partners
Partner
Jose Moreno
Partner
Marc Bartomeus
Partner
Carsten Schemmel
Partner
Jose Martin Cabiedes
Partner
Contact Us
Let’s Talk
Career and Cooperation
We are looking to partner with professionals across Czechia and Slovakia willing to help us with anything from deal sourcing (as mediators/brokers or for a standard finder’s fee) to deal advisory or due diligence.
We are also happy to meet the media, acquisition bankers, lawyers, accountants, tax professionals, or anyone who has been interested in search funds or specifically SMGO and would like to work with us on a long-term basis.
At the same time, we offer part-time internships to motivated students interested in private equity, search funds and entrepreneurship + investing in general.
Write us at [email protected] or use the form next to this text.
Our Address
Cyrilská 7
602 00 Brno-střed-Trnitá
Czech Republic
Let’s Talk
+420 777 827 666
[email protected]