Saudi Economic & Development Co Ltd (SEDCO)

             Direct Investment Group (DIG)

 

INVESTMENT CRITERIA

 

1.    Profile of Target Investee Company - Unlisted

  • Region:             MENA including Turkey and Iran plus India, Singapore,

                              Malaysia, Indonesia, Thailand and Vietnam.

  • Sectors:           All sectors except financial services and real estate.
  • Net Income:     Minimum USD 4 million.
  • ROE:                Minimum 20%.
  • Participation:     Minimum shareholding is a function of company’s equity value, as follows:

4    Up to USD 150 million – 20%

4    USD 150 – 250 million – 15%

4    Over 250 million – 10%

  • Business is Shariah compliant.
  • Target stake size will range between USD 20 million and USD 40 million.
  • Compatible and strategic partner with a long term vision to grow and expand the business across the region.
  • Proven business model evidenced by growth in profitability.
  • Successful management team
  • Business is in a high growth sector (growth at least double that of GDP).
  • Company to have potential to rank in the top 3 in its segment, within 3 years.

 

 

2.    Required Documentation

An investment proposal should include the following:

  • Historical financial performance of the company for at least 5 years.
  • Business plan with financial projections for at least 3 years into the future.
  • Business strategy.
  • Industry analysis.
  • Competitive analysis.
  • Risk analysis.
  • Critical success factors.
  • Key performance indicators.
  • Rationale for capital increase.

 

 

3.    Confidentiality

Any document and information submitted will be treated with full confidentiality after signing a Non Disclosure Agreement (NDA).