After acquisition how do we get access to capital?
April 01 2021
Contributed by: Chris Martin, Managing Director, Food Tech Group
So how does growth capital work with the Food Tech Group? Business owners selling their business often have well-tuned insights into specific needs of their
market. After selling their business, they’re keen to address those needs. Food Tech Group is also a growth capital partner with which to build new solutions.
Another scenario could be that there are other companies - complementary or competitor - that could be acquired and tucked into your company. Solution innovation can never stop. If you’re not moving forward, you’re most likely sliding backwards.
“Food Tech Group is also a growth capital partner with which to build new solutions.”
The Food Tech Group and its corporate parent Constellation Software can internally source capital. Here are the basics: we create an ‘initiative’ with a business case. This business case is not that different than deciding to acquire another company. Financial measures like Internal Rate of Return (IRR) and Return on Invested Capital (ROIC) are used to approve these initiatives.
Those that make the project a success participate in the financial upside. That team has total access to best practices and coaching gleaned across hundreds of companies and decades of organic growth experience. This means the “initiative” leaders make less mistakes along the way, waste less capital, and get their idea to market faster.