A simpler way to scale
Small business owners today have it tough. Competition is fierce and not only are they competing with a multitude of other independent businesses, but they also have to complete with large multinational companies who have bigger budgets and more manpower behind them.
They are tired of being cut out of the action. Not able to secure significant procurement contracts because of size, all while needing those contracts for advancement. The age old chicken before the egg problem is being played out over and over again in small businesses globally.
This traditional system for small business growth is slow and outdated, there needed to be a better way.
What Unity Group did was rethink the way small to medium sized enterprise (“SME”) owners attract investment and scale, and what we came up with is a new type of business model – Agglomeration™.
What is Agglomeration™
What are the benefits of Agglomeration™ for SME owners?
The Agglomeration™ model was created for SME owners to empower and enable them to transition their business from small, founder-lead into a large multinational company. It enables scale, unlocks liquidity, but unlike “normal” mergers and acquisitions (“M&A”), it allows owners to maintain control over their business.
1. Bigger, faster
Achieve operational and balance sheet scale instantly, which provides access to larger contracts and clients whose strict procurement guidelines usually preclude SMEs from the bidding process.
2. Access to capital
The Agglomeration™ Model offers a smooth and steady risk managed route to accessing capital while allowing business owners to retain full control of their operations.
3. Complementary skills
Business owners are incentivised, through their equity interests and a transparent earn-out structure, to innovate and collaborate by tapping on to complementary skills within the Agglomeration™.
4. Grow through acquisitions
Business owners are also able to pursue inorganic growth opportunities under the model.
5. Access to talent and services
The central holding company offers corporate functions support to ease the transition from the private-to-public market.