SimpleCiti invests in established companies with a solid business model, sustainable market position and strong management team. Other important criteria relate to cash flow generation and strong North American presence or development potential.
Unique products and innovative thinking is a start, but lasting competitive advantage typically comes from such things as strong intellectual property, strategic relationships and agreements which are exclusive (or exclusive with respect to a specific field), first-mover advantage which can be converted into “ownership” of the customer relationship, very strong brand recognition, hard to duplicate manufacturing or business model innovation, or special skills or knowledge not easily replicated.
SimpleCiti Holdings looks for founders and entrepreneurs who seek to build high-growth businesses. Management team members are visionary, passionate, committed, tenacious, coachable and credible. We look for individuals that demonstrate leadership, effective and timely communication, clarity of vision, good listening skills, willingness to work hard, and a service- and customer-centric view of the world.
The presence of a solid business model is a key element for each investment. The company’s leadership position needs to be derived from a real competitive advantage which is strong and sustainable. In this case, the main keys for unlocking further value creation are in the hands of the company. Likewise, development will not be primarily dependent upon market conditions, but will be driven by internal initiatives or specific opportunities. Sustainable competitive advantage can be derived from barriers to entry, unique technology, dominant market share or state-of-the-art operations.
We seek to invest in companies with clear and sustainable growth perspectives, over and above market growth. SimpleCiti hence prefers investment returns to be primarily based on the increase of sales and cash flow rather than on pure deleveraging and financial engineering. Furthermore, we believe that growth fuels corporate development and can counterbalance the impact of a cyclical downturn in the overall market.
The capacity of a company to convert sales into free cash flow is a third important investment criterion for SimpleCiti. It allows the company to further invest in the growth and strategic development of its business and/or to distribute dividends on a regular basis.
SimpleCiti invests in companies led by strong management teams displaying strategic vision, dedication and inspirational leadership. We encourage the implementation of long term incentive plans that align the interests of management and shareholders.
As specialists in high speed consumer packaged goods, Beverages, Liquor Store Consolidation, Commercial Real Estate Investments, & Opportunity Zones we leverage deep sector knowledge to hit the ground running, make informed decisions, be strategically creative and identify real potential — all within the context of the targeted industry.
Capitalizing on the experience and expertise of our investment staff, operating advisors and expansive network, we align with our partners to not only grow — but accelerate — businesses.
We work closely with our management partners to source and close strategic opportunities that are financially accretive.
Our core set of values based on integrity and mutual respect allows us to transform businesses “the right way” — one that benefits the company, its people and the bottom line.
