We formed our thesis during 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. Technology and transformation were at the forefront of our thinking. To build the next generation of professional services, we need to invest in 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 in the form of 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-first, 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. In fact, it is already happening across sectors. Yet, practitioner-led SMEs 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 was founded – to invest in local businesses in sectors that are proven, but not necessarily popular, assemble them on a digitally-enabled platform, and grow them into a market-leading platform. We believe in the strength and utility of traditional SMEs, but they need to adopt more efficient and effective ways of managing their business. By facilitating digital transformation and implementing modern governance structures we can navigate the changing landscape and build the next generation of professional services.
When exploring a new sector for opportunities, we look for:
- Inelastic / non-cyclical demand
- At least 3 years of profitability
- Strong management team
- Ripe for digital transformation
Our first sector platform is the Mandeleo Animal Health Group. We are building a market-leading animal healthcare business, enabled by a purpose-built digital platform for both clients and staff, and an employee-centric management style. The feedback from clinic owners regarding our hands-on approach has been overwhelmingly positive.
The next step is to build on our promises and implement for the long haul. We built Mandeleo as a partnership to give us the flexibility to adapt to the market’s opportunities. We are always looking for new partners and ideas to join us on this journey. If you you have an idea and want to make it tangible, please reach out. Everyone is welcome here.
Until next time.
