INVESTMENT CRITERIA | Firebird Capital

Our investment criteria

At Firebird Capital, we have clear investment criteria to identify businesses that we are able to acquire and support.

If you are considering selling your business, take a look at our investment criteria below to see if we are a good fit for you.

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Retirement Sale

We aim to provide a solution for business owners looking to retire or transition their business to new ownership.

Established Business

Businesses that have been operating for 10 years or more. This can demonstrate stability and endurance.

Stable Performance

The business has performed well historically with consistent levels of profitability and cash generation.

Competent Operators

There is a management team in place that can operate the business after the owner steps away. Ideally, though not essential, there is a natural successor already in place to lead the business.

Growing Market

Businesses operating in growing markets offer exciting opportunities for future expansion and success.

Competitive Advantage

A competitive advantage allows a business to outperform its competitors and to retain or grow its market share. It can be, for example, a unique service or product; intellectual property; long term customer contracts; and/or a highly qualified team.

Profitability

We seek businesses with Operating Profit/EBITDA between £0.75m to £1.5m, as this shows the business has critical mass and is well placed to grow.

Low Customer Concentration

Businesses with a diverse customer base, where the top three customers account for less than 50% of annual revenue.

High Recurring or Repeat Revenue

More than 50% of annual revenue is repeat (ie: customers are repeat buyers) and/or recurring (the revenue is contractual).

UK Headquartered

Business is headquartered in the UK. Preferably near London, but not essential. Exposure to overseas markets would be advantageous

Sectors & Industries

We pride ourselves on being sector-agnostic, remaining open to exploring opportunities in various industries.

That said, we do have a few themes we prefer based on our expertise and interests.

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Training and Development

Businesses involved in the provision of vocational training, learning or development.

Specialist Consultancy

Businesses offering specialised consultancy services such as psychology, regulatory, legal, tax, financial, cyber or IT.

"Sticky" Sectors

Sectors with high levels of recurring revenue such as IT Managed Services, Accounting and Invoice Finance.

Sectors we like... less

While Firebird Capital remains open to exploring opportunities across various industries, there are specific sectors that fall outside our core investment focus.

Below, we outline the sectors that are not currently aligned with our investment preferences

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Business 2 Consumer (B2C)

Our focus and expertise lies primarily on businesses that serve other businesses or industries.

Retail

Retail businesses are currently outside our core investment focus, as our expertise lies elsewhere.

Low Net Margins

In the pursuit of long-term success and value creation, we prefer to avoid sectors with net margins below 15%.

Disclaimer: The information provided on this page is for informational purposes only and does not constitute an offer or commitment from Firebird Capital. The final decision to pursue a business acquisition will be subject to due diligence and further assessment by Firebird Capital's investment team.