Alliance Partners

Friday, April 03, 2020

Are you positioning your business for a 20X value by 2027?




Paul Bassat has given some great advice to his portfolio companies at Square Peg today 


“Cash is king and make sure you have a profitable and sustainable business.“

In the last few years, Markets have been rewarding growth at all costs 

No more
Going forward markets will be rewarding profitable growth. ”


The next few years will be tough - be sure to make your business profitable and sustainable .


Cash is king.


More money must come in than go out


Be cautious in the immediate term and identify innovative ways to reduce expenditure, ideally, in a way that minimises the impact on your teams.


Seeks experience in the Dot Com Crash and beyond 

For Seek - The period from 2000-2003 - the dot com crash was both a tough period of managing through a crisis but also a major period of value creation. 


They entered the Dotcom crash as the market leader, albeit in a highly competitive market and with a large cash burn. 


Seek emerged from the Dotcom crash as a profitable business and with a dominant market leadership position. 


As a result its share price increased more than 20x from 2003-2007. 

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