Guiding principles

We help turn good technology companies into great businesses. But we are not for everyone. We have some guiding principles in our investment decisions that are core to us.

We typically invest in technology businesses with the following characteristics

B2B technology
Mission critical software/hardware or sticky solution
50%+ recurring or repeat revenue
Mature product portfolio with high barriers to entry
Limited customer concentration
Ability to scale internationally

Ownership

We seek significant ownership or board representation in order to align our interests with entrepreneurs or management.

Geography

We invest in businesses in the UK, Ireland and Netherlands. We will selectively invest in businesses based in other countries in Western Europe where we are able to add value.

Transaction types

We are open to any type of transaction from outright sales, buy-and-builds, turnarounds, distressed/bankruptcy cases and more. More specifically, the businesses we see typically fall into one of these buckets.

Niche Technology

  • £1M+ revenue
  • £0-1M EBITDA
  • SaaS, Enterprise IT, Proprietary Hardware

Carve-Outs

  • £2M+ revenue
  • No EBITDA requirement
  • Non-strategic assets of a corporate

Special Situations

  • £2M+ revenue
  • EBITDA or cash flow negative
  • Distressed, turnaround, event-driven, insolvency

"Tern supported the management team to accelerate the transformation of our technology and increase the value of our business through a focus on a SaaS operating model and underlying sales and support infrastructure. The result was a carrier-grade, scalable SaaS solution with a large addressable market."

Bhavesh Parmar, CEO Telsis

"Tern’s strategic knowledge and support in the Fintech space helped us position our products appropriately to our target customer segments."

Thish de Zoysa, Founder, PerfectGiftCard

"With their expertise, Tern has been very helpful in transforming our business from on-premise solutions to a full-scale SaaS business."

Graham Moore, Product Director Telsis

"Tern were incredibly quick in understanding our business, focusing on the right levers, putting the right systems and processes in place to accelerate our growth."

Simon Croft, VP Sales & Strategy Dragons