| Investment
Criteria
DMGI invests in data and analytics focused
companies which have an original product idea or novel approach
with which to exploit a changing marketplace. We aim to acquire
market leaders or companies that with our guidance have the
potential to become leaders. We are particularly interested
in companies which operate internationally or have the potential
to do so.
Our preference is to invest in companies
which are closely related to our existing businesses and in
companies which serve the customers of one of our existing
portfolio companies. Simultaneously we are actively evaluating
companies in new sectors which provide must-have information.
We are attracted to situations where we can add value based
on DMGI's information services experience and perspective.
We look for strong management.
We focus on niche business areas and companies
that have potential for high revenue growth and sustained
profitability. We look for companies that can grow revenue
rapidly to at least $50 million, with the potential to realize
high pre-tax profit margins of 20% - 30% or more.
We are open to investing at various stages
in a company's life. We prefer not to invest in very early
stage, pre-revenue companies unless closely aligned with current
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.
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 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 interest
to one of our existing companies.
We continue to be especially attracted
to opportunities in the insurance and real estate sectors,
and in building on our developing presence in the financial
and energy information sectors. We are now actively looking
to expand into new sectors, and welcomes receiving investment
proposals.
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