Dear Community,
We're launching a partnered search fund and we are currently working on our PPM. Even though we are industry agnostic, we are doing 2/3 industry thesis on those that are more interesting to showcase the potential and opportunity. As we are developing these industry thesis, we are looking for feedback on structure/size and experience sharing on is best practice (we want to provide detail but there might be a good balance between detail and time spent). Here's how we are developing:
- Introduction (1-2 pages): Overview of the industry, why we are targeting it, and macro trends;
- Market Trends & Drivers (2-3 pages): Key growth drivers and trends;
- Competitive Landscape (1-2 pages): Analysis of major competitors, barriers to entry, and competitive advantages;
- Acquisition Criteria (1-2 pages): Specific criteria for selecting target companies within the industry;
- Risks & Mitigation (1-2 pages): Potential challenges within the industry and strategies for mitigating these risks;
- Exit Strategy and Valuation Multiples (1-2 Pages): typical exits seen in the industry (within and outside of selected region)
- Conclusion###-###-#### Page)
Any thoughts?
Thank you!
AP
* Introduction: Emphasise why the industry aligns with your fund’s strengths to stand out
* Market trends/drivers: Use both qualitative and quantitative data, distinguishing short vs long term trends
* Competitive landscape: Focus on competitor success drivers and key barriers, with attention to capital and operational challenges
* Acquisition criteria: Be specific, but mention flexibility in factors like company size or geography
* Risks/mitigation: Consider including risk scenarios with mitigation strategies for better foresight
* Exit strategy/valuation: Mention less common exit paths alongside typical ones to highlight growth potential
Additional sections, you may want to consider adding
* Regulatory environment: Key industry regulations impacting growth or acquisitions
* Technology/innovation: How tech trends might create opportunities or risks
* Customer segmentation: Deeper insights into target customers and demand trends
* Operational considerations: Factors such as supply chain and scalability
* Financial metrics: Industry specific KPIs guiding acquisition and valuation
Hope this helps