The firm specializes in acquiring family businesses and then optimize its operation.
The market of family businesses by nature presents a flaw, that at some point prevents the growth of this type of business, and that either due to operational capacities, lack of access to financing, among other causes, leads to the closure of these ventures.
Unities Alliance Group found, precisely in this market failure, a business opportunity that allows not only to rescue these companies, but to optimize them and take them along the path of growth.
This model, in the words of its CEO, Enrique Martínez y Morales, consists in acquiring these companies through the Unities holder, the investment fund EFM Capital, professionalizing all areas of these businesses.
“With a family business there are always areas of opportunity with accounting, with the operation, tax issues and there is no one in the market who fairly values these companies. So, you cannot sell them because they do not have their information structured, there is no trust for part of the buyer and then they end up closing these companies”, he said.
In this process, the owners of the companies are invited to participate to the group of investors, where the value of their company is the contribution that they make and in advance an agreement is established on the possible sale of said company and the profitability that they would obtain from said operation.
“They participate (shareholders) with us in this growth and improvement model for their companies and these shareholders are part of a larger company that could even be listed on public markets in the future”, he said.
Today, Unities Alliance Group has acquired companies that allow it to have a presence in five industries, Information Technology, Industrial, Consumer, Agribusiness and Manufacturing.
“We integrate them into Unities, which is a subsidiary that absorbs companies with a professional team that merges them according to the industry and when they acquire an expected degree of maturity, which can be between 12 and 36 months, it is passed again to FM Capital and invests or sells them”, Martínez explained.
He added that the model has called outside of Mexico, and its managers have been invited by Harvard University to share the experience in the operation of the business, the same in Spain, country where EFM Capital and Unities will start operations in this 2019 and hope to carry out the first acquisition at the end of the year or beginning of the next.
“The model is very agile, in weeks we can make the acquisition”, he added.
Regarding the profile of the companies that are acquired by EFM Capital, Martínez explained that these vary, even the size, however, they seek that, on average, they bill between 10 and 20 million dollars a year and that they contribute some value characteristic to the portfolio of Unities
“Some provide margin, others flow, other currency diversity. Among companies there must be a synergy, we look for that sense regarding the characteristics of each company”, Martínez said.
Among the companies that belong to the group, there are some of the agricultural sector, such as VitaBien, egg producer or Roma tomato; of the consumer sector: Librería La Ventana and Photofolio & Books.
With information from La Política Online