Onside | Page 15

Nick Leitch [email protected] 0121 231 3225 How do you source business investment opportunities? We spend significant time with our networks highlighting the transactions we’ve delivered, their progress to date and how Seneca will work with them and the management team in any company. What’s most encouraging is the number of new opportunities we see on a week by week basis from sources who’ve been recommended or have become aware of our business from our growing profile and brand. What has been the response of management teams to Seneca’s involvement in the investments you make? We are always wholly open to being referenced via the management teams we are working alongside, or have worked with. Our skill is to supplement management teams’ capabilities. When that works we collectively accelerate a business strategy. Whilst we’ll make tough decisions, success is dependent on being collaborative with management, but also implementing change where appropriate. Are you effectively looking for turnaround situations? No, we are attracted to turnaround opportunities but not solely and therefore there are numerous other investment scenarios we will consider. Key characteristics for attractive investments are; low entry valuations, manageable investment risk and good potential returns. Naturally in turnarounds day one risk following investment means the entry value will be lower than a normal going concern. But this is also true of ‘off market’ deals and hence we seek out those deals where competition is limited, investment risk is acceptable or low and there is a cogent exit story to deliver solid equity returns. As a proportion of the current portfolio turnarounds are in the minority. What messages do you give to