We believe in a decentralized, “light touch” structure with a small, but experienced head office. The leadership teams within our businesses are empowered to drive those businesses. Naturally, we look for strong management teams and work creatively to align the interests of management with their shareholders. When we acquire companies, we strongly prefer successful management teams to stay closely involved post-acquisition and we strive to align ongoing management rewards with shareholder value creation.
While we are “light touch”, we are not passive. We strive to add value based on our experiences and perspective, for example by applying expertise to change a business model. We work with a company’s management to:
dmgi typically invests in data and analytics focused companies providing must-have information by combining large databases with software analytics and the resulting products delivered to business customers in largely electronic formats. Companies that we look to invest in will have all or almost all of the following characteristics:
We are attracted to both “bolt-ons” to our existing companies as well as new, stand-alone companies. We are open to investing at various stages in a company’s lifecycle. We prefer not to invest in very early stage, pre-revenue companies unless closely aligned with our companies’ operating activities, as we prefer companies which have demonstrated an initial proof of concept by having clients and revenues and if not profits at least a clear path to profitability. We typically invest for control, but are flexible about how we get there, ranging from taking a minority equity stake to outright purchase. We are willing to take minority stakes in early stage companies in sectors which are new but of interest to us, or if they are of strategic interest to one of our existing companies.
Mature businesses are of interest if they can be rolled into an existing group company, or if a management team comes to us with a vision for transforming such a company’s performance. We continue to be especially attracted to opportunities in the real estate, energy and educational information sectors. We are also actively looking to expand into new sectors such as Healthcare and Agricultural Information and welcome receiving investment proposals.