Traditional businesses are overlooked because they aren’t sexy but sexy is just about perspective.
I’m changing tune this week to stick closer to the I,RR remit: investing and finding opportunities.
Let’s get into it.
My firm, Mandeleo Partners, did not invent acquisition entrepreneurship or private equity. Yet, we look to enhance it.
Our goal is to transform sectors in the United Kingdom through digital transformation and an infinite time horizon. These days, however, everyone seems to have an infinite time horizon.
We formed our thesis in the midst of the pandemic. Most businesses were struggling to navigate the changing economic environment. People were losing jobs and businesses were losing customers. It wasn’t an issue of demand but rather flexibility and adaptability. The local high street was banking on furlough schemes and job retention programs rather than introspecting on their existing model and the new generation of customers and clients that believe businesses can still run remotely. In fact, they demand that things run remotely with more touch points online rather than in-person. At least I do.
If I have to call my dry cleaner rather than select my service and time of booking on their website, I might cry. I’m not being petty, I just want to be able to handle tasks in this manner. Calls exhaust me and, let’s be honest, whenever the line is busy, I end up forgetting and the task goes into a bottomless pit of my incomplete actions.
Naturally, technology and transformation were always at the forefront of our thinking. Specifically in professional services and to build the next generation of professional services, we need to acquire businesses and transform them from within.
The opportunity is massive. Over the next 25 years, it is estimated that $65 trillion will shift from Baby Boomers to Millennials. This comes from inheritance, retiring professionals, family-owned operations and more. One way or another, Millennials, and the generations that follow, will guide change.
All three partners at Mandeleo fall into that demographic category. We are digital natives (one of the last portion of Millennials that still remember dial-up internet), open to alternative investment opportunities and focus on the environment. Businesses will have to adapt to these demands, fast. Consumers will spend their dollars on businesses that understand technology’s benefits. Bank accounts that require printed documents will be left behind. Appointments that can’t be scheduled online will not be scheduled. And on, and on..
This transition is not going to happen overnight nor is it going to be a shock to the system. We are already moving in that direction. Yet, businesses across the United Kingdom, have still not made those adjustments. There is a concerted effort across the board, but one that is slower than required.
That is why Mandeleo Partners exists. We believe in the strength and utility of traditional businesses. They must and will never die. However, they must adapt.
We focus on investing in traditional businesses that VCs often overlook, in fact, most B2C SaaS products are focussed on taking professionals out of the equation completely. We believe by facilitating digital transformation and implementing modern governance structures we can navigate the changing landscape and build the next generation of professional services.
Our investment criteria is simple.
- Large market or sector with relatively inelastic demand
- Over 3 years of profitability
- Strong team and management
- Ripe for digital transformation
Our first sector platform is Mandeleo Animal Health Group. We are building the next generation in animal healthcare. We partner with clinics across the United Kingdom, build digital platforms for clients and internal operations, and focus on employee ownership and wellbeing.
The reception and acceptance of our model and strategy is market validation. The next step is to build on our promises and execute for the long haul (the easy part some say.. that was sarcasm).
We are always looking for new partners and ideas to join us on this journey. If you believe in what we are building, please reach out. Everyone is welcome here.
Until next time.
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