Investment Strategy
Strategically, AdL Holdings has opportunities to grow by investing in Small Business and companies with potential of gaining high market share, introducing new products, and entering new geographical markets. We invest in areas where rapid growth and high returns on capital employed are achievable.
We do not seek majority company shares in our deals, nor controlling influence over the management/operations. However, AdL holdings is looking for companies willing to take advice in business & market intelligence and corporate & partnership strategy. Deciding in participating in business, is more a question of finding the right opportunity set that has a low-enough entry point.
New Lines of Business
In the past, diversification has proven an effective shield for economic downturns and crises. The goal is to enhance the company value by holding a broad investment portfolio. Therefore, when looking for potential agreements, main targets are:
- Business Opportunities in companies with a Debt-to-EBITDA ratio (ability to pay off debts) of less than 0.5. This means, companies with more than enough liquidity to pay back in the short-run (2 years max.).
- Cash-starved companies with the potential to become leaders in a given niche market by applying our “invest-grow-divest” strategy.
- Firms in need of $100K USD or less, for expanding working capital (payroll or short-term improvements, etc.), funding new projects, strengthening the balance sheet or make acquisitions.
- Companies with annual sales from $50K up to $300K USD.
- No start-ups, companies with at least 2 years in business (black numbers).
We see investment opportunities in the following industries:
- Industrial - Automation equipment solutions (machine vision, robotics, machinery)
- Energy - Oilfield services (industrial equipment and trucking services)
- Food Production and Bakery– wholesale (distribution, new equipment, material sourcing)
- Restaurants – Non-franchise (facilities expansion, new equipment, new branches)
- Hospitality – Boutique hotels (facilities upgrading, revamping and renovation, expansion)
- Other industries – Attractive business plans, profitable enough to share earnings and repay investment.
Financial Outcome on Recent Investments:
- In 2020-Q1, the Return on Investments in the Restaurant Industry is showing positive results, allowing a 54% average Annual Return.
- Along 2019-2020, investments in the Automation Industry are averaging a 33.6% Annual Return.
- In early 2020, as part of a New Deal with our Iberian Ham & Sausages Imports customer, a 3-year contract was signed in order to complete a mayor product purchase from a Spanish producer. This investment in the Food Distribution Industry will provide a 25.8% average Annual Return.
- At the beginning of 2020, as a result of a New Investment with our Grilled Meat Tacos Restaurant customer, funds were allocated to: Relocate the main branch and Open up a brand new branch in a neighboring regional market to meet unattended demand.