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 us

01

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.

02

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.

03

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

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

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

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 Application

Tomáš 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]

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