Midas Group invest in exceptional, smart and sustainable companies. We use our compassion, competence, and energy to make a difference in these companies.

The world are changing and we acknowledge in particular technology change, climate change, demographic shifts, and resource scarcity, when we look into future investments. We love a fresh perspective and are committed to make a difference in everything we do.

Midas Group were founded by Marina and Frank R. Ystenes in september 1st 2005.

MISSION & VALUES

Mission

Midas Group’s mission is to invest in and support the development of responsible, enduring companies, create long-term value and generate superior returns for our owners.

Midas Group is committed to investing responsibly and believes that a responsible approach is essential for promoting long-term business success and value creation.

Midas Group’s successful model blends a careful approach to investment selection, responsible investment, strategic development, operational excellence and a committed ownership.

INVESTMENT ROADMAP
  • Deal sourching

    Unique access to deals and head start/high qulity due diligence.

  • Industry attractiveness

    Stringent selection process based on

    • Industry attractiveness
    • Company position
    • Ability to bring value add to the situation
  • Company position

  • Value creation themes

  • Make it happen

    Relentless focus on execution and confidence in ability to drive business improvement.

    Ability to forge productive relationships with management and co-investors.

DEDICATED CONTRIBUTION

Committed Ownership

Midas Group’s aim is to act as the catalyst in realising long-term profit enhancement for its investments. Setting mutual goals with the individual portfolio company managements is a critical factor in successfully creating responsible shared value. This might include actions that require several years to come to fruition, such as strategic add-on acquisitions, organic growth or establishing an international sales organisation.

Managing Complexity

Midas Group’s investments are often industry-consolidating buy-outs in which two or more related businesses are acquired and combined into a new, stronger entity. Midas Group has extensive experience in managing these potential complex transactions.

Energy and Drive

Midas Group`s inherent culture is characterised by a hands-on approach, energy and drive and a true commitment to change and long-term value creation in the portfolio companies. Midas Group can quickly analyse complex investments or strategic situations, supporting rapid decision making with respect to potential transactions and internal change at the portfolio company level.

Corporate Agenda

At the start of any relationship, key elements in the corporate agenda are addressed and these can include a basic approach to secure competitiveness by reducing complexity, streamlining processes, reducing cost levels and ensuring an appropriate financial structure. From there, growth and development are encouraged by expansion into new markets, investments in product development and other organic growth initiatives.

INVESTMENT CRITERIAS

Management team.

Is the management team experienced, driven, coachable and willing to cede some control and decision-making authority to outside investors? We look for teams of high-quality entrepreneurs with a track record of leadership and performance – either in the company’s specific industry or in prior entrepreneurial ventures. We also look at your team’s passion for and commitment to the new business idea, and your ability to inspire confidence among future stakeholders, including employees, potential customers, and investors. As we will be working together as partners, your team’s credibility is essential. In addition, your team must be open to and comfortable with receiving input provided by us.

Market opportunity.  We invest in solutions that address major problems for significantly large addressable target markets. Do you have an identifiable market segment? Is there a demonstrable and significant demand for your solution?  Is the projected spending in your product category large and growing?

Go to Market Strategy. Do you plan to achieve widespread market penetration for your products and services? How will you do this as efficiently as possible? Will you create an internal, direct sales team, or will you rely on external channel partners?

Financials. We are looking for well thought out, logical and reasonable revenue plans.  Most financial plans do not achieve their revenue projections, so we will evaluate plans under the assumption of a revenue shortfall.  Consequently, gross margin and cash positions are critical variables to manage.

Valuation. The majority of our deal valuations are in the 50 mnok to 200 mnok range.  A key reason for this is that it gives us the potential for a nice return at a modest exit valuation. It also allows for some protection against future round dilution.  It is also in the entrepreneur’s best interest to have the valuations of subsequent rounds increasing and avoiding bad will and anti-dilution ratchets.

Strategy. As a starting point we look for companies we want to contribute to for a long time. We are looking for partnerships and ownerships with no end. Of course, we can never predict the future, and needs to adapt to any market, industry and players accordingly. But, in general, we are in this game for the long run.

MIDAS GROUP