Investing... in my opinion.

The truth is that investing is part skill part gamble… in my opinion.

When it comes to assessing a deal opportunity we all want to find that hidden gem and there are a few key things we all look for. It’s not just about finding the next unicorn (I’m not saying that wouldn’t be incredible though!).?

Given that with the launch of Recruitment Entrepreneur Middle East , James Caan CBE , James Kevan and I will be personally investing in start up and scale up recruitment groups across the GCC I thought why not make it super clear the five things that I, personally, keep an eye out for when assessing an investment opportunity:

1.?????The financials: I like to know that a company or project has a solid financial foundation. I'll take a look at the balance sheet, income statement, and cash flow statement to get a sense of its financial health. I'll also check out things like revenue growth, profit margins, and debt levels to see if the company is on solid footing.

2.?????The market opportunity: I also want to see that a company or project is operating in a market that has significant growth potential. I'll look at things like the size of the market, the number of competitors, and the potential for future revenue growth.

3.?????The management team: I want to see that a company or project has a strong management team in place. I'll check out the team's track record, experience, and qualifications to see if they have the skills and experience necessary to lead the company to success. This might also stretch to existing investors or board members, all key stakeholders are in the mix.

4.?????Competitive advantage: I also want to see that a company or project has a unique competitive advantage that sets it apart from its competitors. This could be anything from a patented technology to a strong brand or a loyal customer base. It is at this point of the assessment that I also look inwards and review where my involvement or the support of my portfolio companies can assist the growth. We are stronger together after all!

5.?????Valuation: Finally, I want to see that a company or project is being offered at a fair and justified price. I'll check out things like the company's price-to-earnings ratio, price-to-sales ratio, and other valuation metrics to see if the company is being offered at a fair price now but that also that valuation allows for growth.

So, basically it’s a mixed bag. I look for a mix of solid financials, a promising market opportunity, a strong management team, a unique competitive advantage, and a justified valuation. And, of course, a little bit of that startup magic never hurt anyone right??

If you are in the employment or recruitment space and looking at options available to start or scale your own business over 2023– maybe we should chat? The coffee is on me!?