Acquisition Strategy
Acquisition Strategy
AWT Group has an acquisition strategy which effectively offers a service to large groups looking to reorganise and to smaller businesses with owner-managers looking for a managed exit or retirement from their business. In the last 12 months, we have reviewed nearly 30 acquisition opportunities in the water services and utility sector.
We are interested in all water-related businesses that meet our acquisition criteria, we usually always back the existing management to take the business forward.
If you are interested in hearing more please get in contact with us. Please see the acquisition criteria below, where we specialise in deals of <£2m of operating profit.
Acquisition Criteria
The strategy of AWT Group is to acquire mature, cash generative businesses and to hold them in perpetuity, re-investing cash flow back into the group holding fund for future acquisitions which synergise with the group companies or distributing it to the Company’s shareholders. AWT Group intends to remain private and has no “exit” strategy.
- Annual operating profits from a minimum of £100k (lower for an asset purchase that is a good fit and easily integrated) up to a maximum of £2m operating profits p.a.
- A history of generating profits and cash flow over a sustained period of time (at least 3 years, ideally over 10 years)
- Can incentivise existing management with equity
- No over-reliance on a single customer or a small group of customers
- Operational management who come with the deal, unless the business is simple or a good fit (including in terms of location) with our existing businesses that we can take it on without management
- Will purchase those businesses which are perceived as “unsexy” and suffering from slow growth, no growth or gentle decline
- A strong, ideally dominant, market share in its particular niche
Most Recent Acquisition
Aquaco was acquired in Feb 2020. Which pioneers water recycling through grey and rainwater technologies
AWT Group has a pool of investment funding and has aggressive plans to add to its ever-growing group of water-related companies
History of the Group
AWT Group was established in 2020, but the founders have been privately involved in M&A for the past 7 years across the globe. AWT Group is based in the south-east of England but is planning to expand its operations and global reach to the MENA regions in 2021.