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© 2007 Paragon
Advisory Pty Ltd
INVESTMENT MANDATE
Paragon is able to pursue buyouts and expansion of companies throughout Australia. We are particularly focussed on equity investments of $1 to $5 million.
We have $34 million of funds under management. All our money is fully committed by our investors, who are superannuation funds and high net worth individuals. Investment approval is obtained through our internal investment committee. There is no external investor approval required.
WHO WE SEEK
Paragon invests into established companies, with a proven product or service. Companies assessed to date range from $2 million to $50 million turnover.
They are companies which are seeking to grow, for example by expanding exports, operations domestically, or expanding production and product range. Expansion may be achieved organically, or through acquisition.
They are companies which have a competitive advantage, whether it be a brand, technology or market niche. They are often the number one or two company in their defined region and industry sector.
As in any relationship, we also seek a personality fit and alignment of interests with the other owners and senior management of the business.
WHO WE INVEST IN
• Manufacturing |
• Electronics |
EXIT
Private Equity firms invest for the purpose of making substantial returns for their investors. We look for a clear path to an exit and expect that any company we invest into will undertake a liquidity event (typically a trade sale or a listing) within three to five years after investment.
Types of Investment
Management Buy Outs
Paragon finances Management Buy Outs (MBOs) of companies worth up to $20 million.
An MBO is where the management team uses private equity and debt financing to buy out the existing owners of the business.
For the management team, this provides them with an opportunity to part own the business they work for, and to hence share the increase in value of the company due to their work.
For owners, an MBO means a sale to people who best understand the business, and a sale process which is discreet. Private equity involvement means that owners can be paid cash, in full and up front.
Expansion Using Equity Finance
Private and unlisted companies are unable to easily raise additional capital, which places constraints on their growth. Paragon provides additional private equity of up to $5 million, and can work with other investors for larger amounts.
Private equity can be used for any purpose, such as overseas expansion, new production lines, working capital or additional staff. We work alongside you and your lending institution to provide the best finance package.
Private equity bankrolls the company’s expansion plans – we do not dictate the path the company is to take, nor do we try to manage the business.
Our investment is for an equity stake, as our aim is to share risks and returns, and create wealth with the other owners of the business for all shareholders.
We generally work to achieve a substantial capital gain, rather then pursuing a dividend stream.
Level 1, 121 Greenhill Road
UNLEY SA 5061
Tel (08) 8271 0160
Fax (08) 8373 5075
enquiry@paragonadvisory.com.au