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.
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.
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.
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 twenty mil. € of acquisition capital ready for deployment
experience from over hundred acquisitions across Europe and globally
Why Sell to Us?
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%
Stable resilient business based in Czechia or Slovakia
- Stable, fragmented customer base
- Resilience against economic cycles
- Low CAPEX requirements
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
Stable, growing and fragmented. Three indicative examples:
- B2B software and services
- Tech-enabled outsourcing
- Niche manufacturing
Stable and profitable at least for the last three years
- EUR800 ths. – 4mil. in EBITDA
- >50% FCF/EBITDA conversion
- >10% EBITDA margin
Jiří Prokop – CHI Partners
Jan Simon – Vonzeo
Bill Egan – Marion Equity
Mark Egan – Marion Equity
Omer Ben Shach
Jose Martin Cabiedes
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.
602 00 Brno-střed-Trnitá