At The Akio Group, we are committed to fostering growth and innovation by forming partnerships with small to medium-sized companies poised for transformative success. Our approach is built on a foundation of collaboration, strategic enhancement, and sustainable growth. We aim to identify and invest in businesses that not only show promise but also demonstrate a strong foundation in financial stability and market presence.

We believe that true value is created through collaborative efforts that enhance strategic positioning and drive sustainable growth. Our targeted investment criteria and focus on specific industries are designed to ensure that we partner with companies where we can have the most significant impact.

Here are our core investment criteria and industry focuses:

Financial Criteria

We look for companies that exhibit robust financial health and have the potential for continued growth and profitability. Our financial benchmarks include:

1. Revenue Range: Companies generating annual revenues between $1 million and $5 million.

2. EBIDTA Margin: A greater than 10% Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) margin.

3. Positive Cash Flow: Demonstrating strong liquidity and financial flexibility to support operations and growth initiatives.

4. Revenue Concentration: Preference for businesses with low to medium revenue concentration, reducing dependency on a limited number of customers for the majority of revenue.

Industry Focus

Our investment strategy concentrates on sectors where we believe our expertise and networks can significantly impact the companies we partner with. These sectors include:

1. Utilities: Essential service providers with a focus on sustainability and innovation.

2. Technology: Businesses at the forefront of software, hardware, and IT services that are shaping the future.

3. Telecom: Companies that are innovating in communication technologies and services.

4. Light Manufacturing and Distribution: Companies with efficient production and distribution capabilities serving diverse markets.

Target Characteristics

We seek companies that not only meet our financial and industry criteria but also align with our values of leadership, innovation, and sustainability. Ideal target companies would have:

1. Strong Market Reputation: Recognized for quality, reliability, and innovation within their operating space.

2. Diverse Contractual Revenue: A healthy mix of project-based and long-term contracts (1+ year), ensuring a stable revenue stream.

3. Balanced Customer Portfolio: A broad customer base to prevent revenue concentration risks.

4. Transition-Friendly Ownership: Owners looking to exit but are willing to remain during a transition period to ensure continuity and success.

5. Minority Stake Retention: Owners interested in retaining a minority stake, demonstrating continued commitment to the company's success.

6. Corporate Carve-Outs: Opportunities to acquire business units or subsidiaries that can thrive as standalone entities.