The mergers and acquisitions industry (M&A) has for decades offered a unique opportunity for businesses to expand, restructure, and increase profits. By selling a part of company shares or agreeing to a complete acquisition, business owners can honor years of hard work and effort, making a strategic move often resulting in their organizations' surging prosperity. In February 2023, Aly Taha and other experienced entrepreneurs created Memphis Capital, a search fund that offers SMEs in Egypt a one-of-a-kind chance to boost their businesses and protect their legacy.
The 2-year long mandate granted Memphis Capital permission to scour the Egyptian SME landscape in search of the needle in the haystack—the most promising enterprise with the highest chances for success. To qualify, the businesses in consideration must be either registered or actively operating in Egypt. Moreover, Memphis Capital is appraising already successful organizations with a healthy and positive cashflow, low cyclicality in a fragmented industry, low capital expenditure needs, revenue of a minimum of $5 million, and an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of more than 15% of the total revenue.
Memphis Capital’s plans include acquiring a chosen SME, performing due diligence, curating meticulous and evidence-based plans, and holding the company for another few years until its profits significantly multiply.
To find the most lucrative business in that criteria, Aly leverages his broad personal and professional network, seeking new leads throughout several platforms. Aly, an expert with over 15 years of experience in capital investments, is also a board member of T20, an organization connecting all Egyptian graduates from the top 20 universities worldwide. Fueling his efforts are local brokers who offer their advice, services, and networks.
Aly’s half-Egyptian nationality often gives Memphis Capital a competitive edge. As he emphasizes, in addition to boasting an impressive network of international connections, having the same roots as the people Memphis Capital works with increases a sense of trust. A diverse and multicultural background also enables Aly to understand regional dialects and cultures and foster relationships with people from all over the world.
Memphis Capital is open to fully acquiring the selected SME or - according to the owner’s preference - buying a minimum of 70% shares. The fund is open to entrepreneurs keeping minority shares for two reasons. First of all, some business owners have developed successful firms, aren’t sure of how to scale them up, and are keen to trust others to do the task, but still want to be part of that journey. On the other side of the spectrum, owners nearing retirement age might not have the time or energy to maintain a company thriving and are ready to sell majority shares, but want to remain a part of the organization and watch their money work for them.
For Egyptian SMEs, operating in a cyclical and currently recovering landscape connected to the country’s economy, Memphis Capital offers a once-in-a-lifetime chance for success. The recent limitations imposed on foreign exchange currencies hinder Egyptian SMEs’ progress further, highlighting Memphis Capital as a unique opportunity in a challenging and volatile terrain.
While Egyptian SMEs might be struggling now, Aly says, “Cairo is one of the biggest cities in the world, and the entrepreneurial spirit is bustling through the streets. The market is big and well-connected to the Middle East and the rest of Africa, and the possibilities expand each year. I believe Egypt has tremendous potential among emerging markets, and I’m glad I get to help Egyptian SMEs succeed.”
Media Contact
Name: Aly Taha
Email: [email protected]
