Idea Generation – Valuation – Investment Case – Buying Discipline – Portfolio Monitoring – Sale Process
Accessing the Deal Flow
Identifying the investable: Our potential investment targets arise mostly through our own research and from our networking efforts. They often come through introductions from owners and managers of existing portfolio companies. We also welcome introductions from intermediaries and third parties, but we particularly appreciate direct contact from entrepreneurs and owners.
Initial engagement: After a short initial review of an opportunity, we will indicate the terms and conditions of a likely investment. >> more
If this is accepted by the business owners, we begin a period of more intensive investigation and due diligence. Depending on the complexity of a transaction, the period from the start of a formal investigation to its completion is likely to last approximately 3 months.
Due diligence: We operate using regionally based teams that are responsible for identifying, negotiating and structuring investment transactions. They arre supported in their efforts through an interactive relationship with the CEE-based ABRIS Investment Committee. >> more
When investigating new opportunities, we typically supplement the efforts of our deal team with selective support from external professionals and specialist consultants.
The resulting due diligence process provides an opportunity for us to fully understand the target business and to interact closely with its owners and management. We believe this provides a valuable method of building trust and understanding between all parties and establishing a sound basis for future cooperation.
Post-investment Interaction: Following completion of an investment transaction, we’ll remain actively engaged in supporting and expanding the value of the business. >> more
Specifically, we have the in-house experience to provide:
- Detailed advice and assistance in acquisition planning (domestic and cross-border)
- Capital expenditure procurement
- Management recruitment and other value-adding areas.
Crucially for supporting our portfolio investments, the majority of our professionals have a depth of previous operational experience across a wide range of international and local industries. This gives us unique insight into the multiple challenges likely to confront local management teams.
In short, we bring both practical and conceptual expertise to the business.
Exit Planning: Before making a final commitment to any investment, we have detailed discussions with the business co-owners and management regarding likely exit plans. We have patient expectations for building value, but the ultimate goal is to realize our investment and distribute the capital appreciation to our institutional investors. >> more
The Abris team has considerable experience in planning and preparing appropriate exit strategies, and we can advise on the various available routes to liquidity: trade sale, initial public offering, secondary sale, etc.
Appraisal & approval: Our ability to complete an investment transaction will depend upon the deal team securing the support of the Investment Committee. >> more
The Investment Committee includes all the senior Abris Partners to streamline the Committee’s decision-making capabilities.
The Committee is based in CEE and is usually able to respond quickly to new information and changing circumstances. It plays a vital role in the appraisal and approval of every investment transaction.
Value Building Process
Prior to completing an investment, we will have identified and agreed with management a number of key appointments and actions to be implemented over the following weeks and months. While each business has its own priorities, Abris has identified a number of measures which are typically necessary to help build value for a mid-market company in the medium-term. >> more
Commonly required steps may include:
- Strengthening the management team through the selective appointment of new skills and functions
- Enhanced financial and operating performance monitoring, possibly including IT system upgrades
- Specialist external industry expertise, either at board level (possibly as a non-executive director) or from retained consultants
These steps are designed to establish a first-class business in terms of reporting standards and effectiveness. It is our belief that corporate transparency, along with close monitoring of the financial and operational aspects of a business, is critical to maximizing its future value.
In parallel with improving reporting standards and management effectiveness, we will also work toward contributing to the operational success of the business. This may start with executing an agreed “100-day plan”, during which management will implement the most pressing changes required and lay the groundwork for achieving longer-term strategic goals. It may also involve Abris providing practical assistance for additional actions needed to grow the business and increase its ultimate value.
Specific areas in which we are usually closely involved include:
- Cross-border expansion: our regional networks can facilitate and simplify migration into new markets
- Acquisition activities: Abris is skilled at identifying and overseeing the acquisition of target companies, whether to deepen current market penetration, expand existing geographical reach, or to incorporate complementary products or services
- Professionalization: Abris believes that in an increasingly global marketplace, businesses must aspire to the highest levels of transparency and professionalism to create maximum value. We therefore place particular emphasis on working with our companies to incorporate sustainable environmental, social and governance (‘ESG’) considerations into their practices and operations
Abris pays particular attention to evaluating a full range of exit strategies when finalizing our investments. We ensure that our expectations are transparent and aligned with those of management and shareholders. >> more
In agreeing a shared objective in terms of exit timing and methodology, we believe it becomes easier to determine a clear strategy for all business and operational matters.
Abris has expertise in the standard methods of value realization – trade sale, IPO and secondary sale - and possesses the necessary skills to guide and advise portfolio companies through what can often be a complex process. We understand that the choice of exit path is important for both management and owners. Therefore we undertake consultations with a broad range of stockbrokers, investment bankers and other market experts in order to gain an in-depth evaluation of market conditions and exit prospects. Once the decision is made, Abris pays particular attention to selecting the right specialist advisers for the process; thereafter, Abris uses its considerable experience in directing and managing their involvement.