AI Issue 4 2017

Acquisition International - April 2017 15 Investing in Industry funds quickly is a most effective way to invest in/ acquire underperforming/hyper-growth businesses and a major differentiating feature of a2e. In many such circumstances, raising funds from third parties is time consuming and is often futile. Achieving results As businesses grow and develop complex operations and need to cope with challenging market conditions, the ability to implement a chosen shareholder or corporate strategy is paramount in achieving the desired results. At a2e, our in-house expertise is augmented by an Academy of Executives – effectively a panel of Industry Experts together with an ‘advisory board’. We believe this is a ‘potent’ force to reckon with, as our track record demonstrates. Investments / deals in the last 15 years In the past 10 years or so, a2e has invested in 28 companies and has exited from 10 investments creating wealth with an Internal Rate of Return (IRR) of 96% per annum. IRR is the Industry Standard for measuring returns and the average BVCA returns for the same period for Mid-market deals is circa 8% - 13% per annum! Six of the acquired businesses were merged with the existing portfolio. A few examples of a2e investments and exit values achieved are noted below: Thomas French Limited Value When acquired - £1k On exit - £0.8m SB Limited Value When acquired - £30k On exit - £6m Spiro Gills Limited Value When acquired - £100k On exit - £5.7m Covrad Heat Transfer Ltd/Serck Value When acquired - £1.7m On exit - £15.8m