In 2012, STREAT – a Melbourne-based social enterprise – acquired two cafés and a coffee roasting business from another social enterprise, the Social Roasting Company (SRC). This enabled STREAT to rapidly expand its impact.
SVA Consulting completed this case study to examine an equity-funded expansion of a social enterprise.
The deal is an excellent example of “social finance” or “impact investing” – a new and evolving practice of investing in opportunities that offer a combination of social impact and financial return.
Social financing can take many forms. In this deal, the purchases were funded through equity: investors were sold a share of ownership, and these funds were then used to acquire the three businesses.
This deal has lessons for social enterprises – who might consider similar approaches for funding expansion. It also has lessons for investors – who may be interested in similar investments that offer both a social and a financial return.
Download the STREAT’s Acquisition of the Social Roasting Company case study (PDF, 679 KB)