Strategy - Growth Through Acquisition
Whilst organic growth is an important element of the creation of shareholder wealth, E&A Limited understands the exponential impact of growth by acquisition.
E&A Limited has identified the service sector of the mining, industrial, water, energy and defence industries as having significant revenue and growth potential for at least the next 5 years and will continue to actively target business acquisitions where our investment criteria can be met.
E&A Limited will look for opportunities to invest in companies that meet the following criteria:
- Value can be added as a result of synergies between the business and existing portfolio of E&A Limited businesses;
- Strong position in a market expected to experience significant growth;
- Available for acquisition at or below its intrinsic value;
- Board control and managerial influence can be obtained;
- Within the areas of expertise and experience of E&A Limited and its executive directors;
- Predictable cash flows and
- Risk can be managed and minimised through appropriate financial, legal, tax and accounting structures.
Equity & Advisory will act as manager of all investments.
All potential acquisitions and investments will undergo appropriate risk identification and management.
The post-acquisition strategy of E&A Limited is to grow the earnings of acquired businesses by strengthening the board, management and financial capacity of Investee Companies, exploiting to the maximum extent practical all synergies.
Acquisitions will only be concluded where control can be obtained, i.e. greater than 50%.