INVESTMENT CRITERIA

Zen’s management appreciates every business is unique. Depending on the business stage of the potential investee company, different criteria will be applied to assess if we can add value. This will be from the viewpoint of all stakeholders, especially both investors and investees. 

 

We prefer to invest as if we are “pilot of a ship” or co-pilot in difficulties or transition to aid companies where we reasonably believe we can assist in the release of substantial value

 

 

MACRO CRITERIA

Business Size

$1-5m Canadian EBITDA. Zen's agenda is to add 5x to 10x in value, to “feed” the Private Equity firms who seek C$10m+ EBITDA in their investments if we plan to exit our investment.

Geography

Our preference for investments in Western Canada. In particular, British Columbia to make it easier for us to have a more "hands-on" approach to assist management in growth. 

 

Multiple Avenues of Growth

We look forward to growing companies with a balanced and diverse growth strategy with more than one primary driver to succeed. 

 

Stable Recurring Cash Flow

Stable positive earnings are preferred that have the potential to be immune to economic downturns. This is because it is tough to agree on the value of the business without positive earnings. However, we have invested exceptionally in early stage businesses, without earnings, where we believe owners share our philosophy.

 

Favourable Industry Trends

Positioned to benefit from attractive industry trends above market growth and provides stronger equity return potential as well as more durable downside protection for the investment

Strong Management Team

Management and team are vital. Zen believes in alignment and consensus. Assistance will be provided from Zen but will rely on management to execute with the assistance of our team if we have not bought out the previous management or owners. 

 

 

 

 

© 2018 by Zen Capital & Mergers ltd.
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