Investment process
The volume of sales or the potential for sales growth in the next 3-5 years should reach at least CZK 500 million.
Expandia does not have sectoral constraints, the preferred sectors are industrial manufacturing and sectors and companies related to the current portfolio of companies of Expandia group.
In the case of interesting larger projects, Expandia is ready to team up with partners and realize investments over CZK 500 million.
The preferred size of investments ranges from CZK 100 to 200 mil equity per project. In the case bank financing is in place Expandia can finance projects up to CZK 500 mil.
Expandia typically seeks a majority investment stake in the target company and active participation in the management or management of the investment. We have an experience with minority stakes, especially in the case there is a strong management role of the other investment partner and provided adequate investment protection mechanisms are in place.
An important parameter is the retention of the company’s independent team management (independent of the seller), which is able to continue to manage and develop the company after its incorporation into the Expandia group.
Expandia’s investment decision-making process is relatively fast when all the necessary information is available. Where justified, the project may be approved, and funding granted within 1 to 2 months of the submission of the basic information by the candidate. Expandia investments are usually made through project-based special purpose vehicle companies (SPVs).
Expandia also actively seeks investment opportunities that in a certain way follow or develop existing projects and investments. In the case of such add-on investment, the key criteria is how the investment fits into the portfolio company and what potential synergies it brings. In this case the investment criteria mentioned below are adjusted and do not limit Expandia’s interest (namely limitation of size).
The most important element in decision making process is analysis of business strategy and plans of the target company and evaluation of the project’s prospects.
Expandia’s partners are expected to build a stable, competent and highly motivated management team that is responsible for creation of long-term strategy and is engaged in active management of the target and is able to provide feedback to the owners and cooperate on important matters.
Expandia has its own team of experts to undertake projects and investments and cooperates with leading advisors and lawyers.
Sought after
types of projects
A prerequisite for an interesting project is also the possibility of obtaining partial financing for the project through bank loans. Almost all projects of the Expandia group are significantly co-financed by renowned banking groups. The involvement of the group in a project usually significantly increases the likelihood of obtaining advantageous bank financing.
Three- or four-star hotels, a min. of 50 rooms, also for due for renovation.
A development project for the construction of logistics of 20,000 m2 or more, or a logistics complex with an expansion potential of at least 5,000 m2.
A development project for the construction of office spaces of totalling 7,000 m2 and more, regional cities and Prague.
A development project or suitable plot for housing construction of at least 100 housing units, Prague and regional cities.
Acquisition target for the GUMOTEX Group – rubber production, expanded polypropylene processing, CZ, SK.
Acquisition target for the ARBES Technologies Group – software developer for the banking and financial sector, separate product or bodyshop service provider, revenues ranging from CZK 15 million to CZK 300 million, CZ, SK, DE, AT, PL.
