Kelly+Partners is an Founder led business with a strong incentive lead culture prevalent throughout the business. Brett Kelly is focused on the development of people, which long term represents sustainable value creation.
The Tuck-in and Marquee inorganic growth acquisition plan represents a strong development of brand name and awareness, with a hopeful end result of a word-of-mouth/network effect throughout Sydney. This network effect will assist organic growth from customer referrals etc. This combined with a diligent capital allocation turns this into an opportunity i would be glad to hold over time as i watch the business develop.
Cash flows are strong and the price seems relatively cheap at 8-9x Owners earnings (Adjusted for NCI). Assuming some growth a payback period of 4-7 years is not outside of imagination. Of course their is some strong competition however, with a fragmented market building market share should not be too hard with significant opportunities abundant.