Investment Strategy
Fliptor looks to deliver strong returns by identifying and building equity positions in emerging growth companies around the world. We provide financial and strategic support to established businesses that exhibit the potential for outstanding value growth. Our experience in our focused industry sectors allow us to have a strong impact on the success.
Fliptor Process
Discover
Pre-investment planning is vital. We generate a huge amount of investment ideas and subject these ideas to a rigorous due diligence process. When the investment proposal is believed to be sufficient, it is brought before our board who in turn assesses the viability.
Define
Following our due diligence process, we'll develop a strategy that builds a full picture of the situation and the value proposition that we can provide. We will get the basics on the drawing board and develop a strategic approach to achieve the firm's objectives.
Develop
We work with management to develop a customised value creation plan that provides absolute clarity on how value will be created, using our team's own operational expertise and that of its extensive network. The value plan will address the target business at all levels. – from organisational structure through to projects relating to individual disciplines and business units.
Deliver
Fliptor believes in building a long term relationship with our owners but strives to obtain its initial return on capital in the shortest amount of time with limited risk. Once we have invested, we are committed to working in partnership; delivering our international network, our market insight and our energy to help build exceptional businesses. The management will develop a detailed analysis early on identifying potential routes to exit.
Having a multi-stage investing approach enables Fliptor to finance companies as they reach their inflection point, or when markets change. At this juncture, stable companies can establish a leading market position, protect that position and maximize value creation. Fliptor’s strategy is to identify the point where market demand and technology intersect and to identify the best positioned company with the vision, product offering and management team to capitalize on this opportunity.
How We Grow Our Businesses
Fliptor is committed to helping businesses through all stages of their development and continues to look for opportunities where they can use their insight into the growth drivers of the underlying business. We believe that this is a more robust source of returns, over the business cycle, than a sole reliance on financial leverage or multiple arbitrage. With today's challenging market conditions, Fliptor will identify longer term opportunities that may have been overlooked by management as they deal with pressing short-term operational issues. Time is invested in gathering information and assessing the experience within the business to accelerate the pace of change. When the investment is sufficiently well developed, it is brought before our management committee who assess the opportunity for growth based on the criteria below.
Seven Step Process for Increasing Returns
- Identify the potential business
- Develop the business plan
- Accelerate performance
- Support the business
- Focus on company growth
- Harness the returns
- Potential exit strategies
How We Select Investments
Fliptor generates a huge number of investment ideas across our global platform. Each of these initial ideas is subject to rigorous assessment by the investment team, who will often call on external analysis to support their deal hypothesis. When the investment is sufficiently well developed, it is brought before our management committees who assess the opportunity based on the criteria below.
- Is the company in one of our sectors of expertise?
- Do we have insight into the risks and opportunities for growth?
- Is it within our targeted size range?
- Is it a business with potential to grow?
- Is it a global company or does it have the potential to be one?
- Can we add value to the business?
- Does it meet our sustainable investment criteria?
On most occasions, we invest from our own balance sheet. This enables us to invest for the longer term and adapt to changes in the business and market dynamics when required. Each investment we make will have a clear value-growth plan and a mutually agreed exit strategy.