Actuity has a rigorous and disciplined approach to identifying, evaluating and making investments. The key elements of this process are set out below.
While it is possible to complete an investment within 8 to 10 weeks of an initial meeting, the time frame in each case will depend on whether a company is “investment ready” and the period required to complete due diligence and finalise documentation.
| Phase | Key Actions |
| Screening | · Assess merits of opportunity, likely transaction execution strategy, and ability to work with existing stakeholders
· Evaluate and prioritise all new opportunities on weekly basis |
| Initial analysis | · High level analysis to determine whether to reject or proceed, including preliminary meeting and management presentation
· Advise relevant parties immediately if we decide not to proceed |
| Investment thesis | · Detailed analysis of company and industry to evaluate growth opportunities, the capability of current/proposed management and systems to deliver, potential value creation strategies, likely time frame to achieve target returns, and divestment options
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| Term Sheet | · Indicative non-binding offer provided in a term sheet
· Highlights key assumptions and key terms required in formal agreement to test if consensus is likely · Ensures key terms agreed prior to expenses being incurred
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| Due Diligence | · Extensive financial, legal and operational due diligence
· Industry and technical experts used as required · Reference checking on key personnel and assessment of capability throughout due diligence · Robust testing of financial models and investment thesis · Commitment of investors based on results of due diligence |
| Documentation | · Shareholders and Share Purchase Agreements to formalise strategic and operational objectives and commitments of all parties
· Employment and incentive arrangements for key management, closely linked to agreed strategic and operational KPI’s · Governance, voting and approval processes · Budgeting, strategic and operational business planning and reporting processes · Pre-emptive, drag and tag along and exit rights · Terms of investor syndicate |
| Capital Structure and Finance | · Optimal mix of equity and debt based on growth plans, industry characteristics and input from tax and legal advisers |