Why work with us?

Your business has been built through dedication. You're thinking of how you can unlock added revenue growth, without selling your business cheaply today. And you want to grow large enough to earn institutional respect, using technology to out-play your rivals. This is where Matsu Partners can help.

Our process

Whether investing in a minority or majority equity position, our approach is based on partnering: recognising that an SME's real worth is not in its cash flows, but the expertise accumulated by management over decades. Our process examines the feasibility of realising synergy by combining this with our capabilities. 

Due Diligence

We engage in 35-60 days of  due diligence to understand your business, to fairly value your business as-is today, and to identify areas where we can drive operational improvement. Deal terms are discussed and agreed. 

Proving value generation

We agree on Milestones to deliver operational improvement over the next 90 days, working on-site with an owner(s) and their team. This builds confidence in our partnership - serving as a foundation for investment. 

Investment

We execute on the deal agreed, working towards revenue and profitability targets together, alongside wider strategic objectives, to maximise competitive positioning and future valuation - with an eventual exit in 3-5 years.  

Why working with Matsu can 8x your valuation

Most SMEs are priced low - simply owing to their size and inability to absorb shocks to their business model - an SME can fail at any time.

Growing a business to US$5-10+m in profitability is vastly more attractive to institutional investors - who are prepared to pay substantial premiums, as these are considered platforms that can continue to grow and scale. 

For an SME to reach this stage requires implementing a range of best practices. Having worked for institutional investors, and where we have built the corporate foundations to achieve this, is where we can unlock several levels of growth beyond an SME's reach.

Frequently asked questions

The below is not comprehensive - please feel free to reach out to us below if you have further questions!

How can I maximise my valuation?

Our partnership model is contingent on scaling the business. If you were to sell 100% today, typically you would be looking at a 4-6x multiple on net profits.

By achieving scale, we believe this multiple should start at 15x+, simply as there is a far larger investor universe prepared to buy assets of this size. This type of valuation can be life-changing for owners vs selling at 4-6x above. 

What size of SME does Matsu Partners target for investment?

We focus on the mid-market sector. Our ideal SME partners are established, operating businesses that generate US$1.5 million or more in annual net profitability. At a minimum, we will consider businesses generating over US$1.0 million in revenues. 

What industries does Matsu Partners invest in?

We specialize in the Healthcare, Education, and Business Services sectors across Southeast Asia. However, we also evaluate high-growth SMEs in other industries on a case-by-case basis.

Which countries in Asia do you invest in?

We target SME investments across key Southeast Asian markets, specifically focusing on Hong Kong, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Given cross-border opportunities, we are also interested in Japan.  

Do you prefer minority investments along existing owners?

Yes. We find this A) Combines both our and management expertise - creating a 1+1 = 3 dynamic; B) Provides greater stability and continuity for the business to thrive; C) Helps accelerate growth; D) Achieves a higher valuation for all stakeholders to benefit.

Can you help if I want to sell 100% of my business?

Potentially. Though we prefer to work with existing owners / management, as long as a strong mid-management team remains, then this is viable

How does Matsu Partners use AI and technology to grow my business?

Unlike traditional private equity, we are an AI-first firm. We deploy data science and multi-agent orchestration directly into your operations to digitalize workflows, optimize revenue generation, and unlock 8x+ value increase over a 3 to 5-year horizon.

How long does it take to complete an investment - does this take longer than normal M&A?

Normal M&A can last between 4-6 months to conclude an initial deal. However, this can last years if mis-managed, or if a buyer insists on earn-outs, representing high levels of uncertainty and operational disruption for owners, employees, and customers alike. 

Our approach avoids these issues. By working with management, we build a deep understanding of the business. Should the owner wish to sell 100% and exit immediately, we can facilitate this without requiring earn-outs or other deferred compensation mechanisms. 

How does your partnership model work in practice?

We place ourselves directly into the business, working under existing management. This typically involves a C-suite role where operational capability is either lacking or inadequate. The aim is to professionalise and hand-over this functionality to internal personnel, transitioning into a non-executive role. This level of involvement helps drive change and wider performance improvement, being an equally invested member of staff

How do you finance a transaction?

This depends on deal size. For micro-deals, we will fund directly, though for a typical transaction, we will syndicate to our investor base who buy in to our investment plans and strategies. Their role is passive throughout the investment duration.