The helping hand of the investor
The answer is initially quite simple: We provide the necessary funds to enable the companies to grow through acquisitions and investments. It is quite important to plan enough room for growth when financing company acquisitions. At the chemicals distributor Brenntag, for example, we have invested around 500 million euros in acquisitions within five years. In the case of transformer manufacturer SGB-SMIT, it was around 80 million euros within three years for the expansion of production capacities. Added to this is our strategic experience in many different industries. We advise management and serve as sparring partners.
Acquisitions usually offer the greatest potential for value enhancement. Growth through acquisitions is our core business, which we master very well and which distinguishes us from most of our competitors. We know from decades of experience how to structure and finance acquisitions. One example is the laboratory service provider synlab which we have thus developed from a medium-sized German company into Europe’s leading laboratory group. However, it is not just about current growth, but above all about future prospects. A potential buyer never invests in history, but buys the future. In this respect, in everything we do, we not only have the success of the company in mind, but also always a successful exit.
It happens, and it’s almost never due to the numbers… The value of a company, its market potential and the industry situation can be assessed objectively. We are very experienced in this… What you can never check one hundred percent in advance is the human factor.
Is the entire management team committed to the company’s success? Does every manager bring the necessary professional and personal quality, commitment, entrepreneurial thinking and dedication? If we find that there are weaknesses here among individuals in the management team, we sometimes cannot avoid a management change. In our experience, things often improve very quickly because the others in the management team flourish and make the most of their newfound freedom.