Astra interview – UK SME acquirer with a tech edge
Preserving SME legacies through technology and a Nordic-inspired acquisition model
See full interview with Acquirers founder Gustaf Hakansson here
Gustaf: Hi Amit, what inspired you and Sergey to found Astra?
Amit Rai: Gustaf, preserving SME owners’ legacies in the UK and driving innovation through technology are our two key motivators.
Both our fathers ran successful SME businesses, but the businesses had to be shut due to a lack of succession planning. Watching that unfold was tough – not just for our families but also for the employees, customers, and suppliers who depended on those businesses.
Fast forward to today, there are around 260k SMEs with revenues from £2m to £20m in the UK. Shockingly, over 30k of them are likely to close permanently in the next five to ten years due to poor succession planning and a lack of institutional money flowing into this segment. That’s a lot of wasted potential, and it’s a fate we’re determined to help British entrepreneurs avoid.
Our second motivator is the transformative power of technology. During our time at BCG X, we saw how digital and AI could spark growth and improve productivity in large companies.
AI alone is predicted to significantly boost productivity. Yet, we’re witnessing SMEs struggling to adopt it. Astra’s mission is to bridge that gap, bringing AI and digital solutions to high-quality SMEs to unlock their productivity and growth potential.
Gustaf: What have you and Sergey accomplished at Astra so far?
Amit: Convincing our spouses that leaving cushy consulting jobs to build an SME-focused serial acquirer was a sane idea is probably our greatest achievement – we’re still not sure they’re convinced!
On a serious note, the last few months have been exhilarating. We’ve closed our first two deals after reviewing nearly 200 businesses and meeting nearly 50 inspiring SME leaders.
We assembled a strong group of investors, featuring a US-based multi-asset PE fund, a family office, and senior leaders from private equity, hedge funds, and consulting.
We’ve also created an exceptional extended partner team for deal sourcing (buy-side and sell-side), execution (financial/legal due diligence service providers and bank financing), and portfolio value creation (digital and accounting support).
This has enabled us to build a strong deal pipeline, with two to three amazing businesses landing on our table every week. We’re proud to bring global capital and innovation to drive growth in the SME sector – a way of “levelling-up” various UK regions, which is needed.
Gustaf: Why focus on capital-light, industrial businesses?
Amit: We’re in this for the long haul, aiming to build a permanent holding company that stands the test of time. That means focusing on sectors that are essential, resilient, and positioned to thrive in the UK for decades to come. B2B businesses – active in energy management, building maintenance, warehousing and logistics – fit the bill perfectly.
Plus, many of these businesses are resistant to offshoring, a perk in an increasingly globalized economy. On top of that, they offer rich opportunities for innovation – using technology and AI to enhance customer centricity, improve service quality, and boost productivity.
Pockets of these verticals are fragmented, capital-light, and possess strong moats, making them ideal for the serial acquirer model. The durability of such firms allows for incremental improvements, benchmarking, and long-term incentives aligned with FCF per share growth.
See full interview with Acquirers founder Gustaf Hakansson here
