THE INVESTMENT SPACE WE WORK ON
There are many firms in the European Area with a value over 100 Million Euros. There are even more with a value over 10 Million. When we further consider all divisions and business units from a large firm that are potential targets to acquire, then this space becomes really large.
However, we quickly distil our areas of interest based on specific investment theses.
Our customers typically are leaders in their specialisations of business model and growth indicators, and are looking to building up their equity base, so they can become a truly international champion. Combining our international and sector experience, we distil our areas of interest based in very specific investment criteria.
The combination of our international expertise and our sector focus affords an excellent vantage point to identify investment themes and we actively engage with those companies best placed to capitalise on these themes. We target market-leading, cash generative, Europe-centric companies with attractive market dynamics, defensible positions, high value-added business models and strong, experienced leadership teams.
We target funds typically making equity investments below €100 million. Over the 10-year life time of a typical fund we aim to at least double the invested capital of our investors and the beneficiaries they represent. Our target for the recipients of our value enhancing initiatives has a valuation between €5 million and €50 million.
Despite major international expansion potential, the client company must be placed on the map for most would be investors and anyone able to take a truly global sector view. We actively seek companies that can capitalise on our existing investment theses.
As an exceptional and proven growth company and a regional leader through private equity backed consolidation, our client company seek investors that can support its growth into a true international champion.
Our engagement often begins long before we design a capital deal. Cultivating such relationships with managers and business owners gets us ahead of the competition and when the time comes we already have a strong affinity with the management team and are able to move quickly. This patient ground-work and the affinity we build with management teams ensures that the entry prices we pay remain attractive.
The firm today offers advisory services on Vision, Strategy, Objectives, Teams, Metrics, Prioritized Initiatives, Roadmap, Implementations, and Support. Also works on service/product/brand development, online promotion, and seamless integrations, sometimes testing and prototyping specific concepts.
On selected cases, the firm can allocate its assets, or equity finance them, and is entering into b2b platforms in the legal management and financial sector.
Value creation plans – Following our engagement, every company develops a ‘Value Creation Plan’ (VCP), initially looking forward three to five years and updated periodically. Monthly and quarterly performance metrics are tracked against this plan, using forward looking indicators predicting performance.
The Value Creation Plan looks at all aspects of operational improvement, with a specific emphasis on our areas of functional expertise: — Internationalisation — Buy and build — Sales force effectiveness — Pricing — Cash management. In order to harness our deep in-house experience in these aspects of business operations, each area of Functional Expertise has a dedicated ‘Capability Champion’ from among the team. By defining individual responsibility in this way, we are better able to consistently identify value across the portfolio and effect change. When it comes to growing businesses there is no such thing as a guaranteed outcome. But we do guarantee our operational input, which is targeted, systematic and on-going throughout the entire period of our engagement/ownership.
Our culture of institutional learning allows us to build on our understanding of specific business models, maximising opportunities and minimising risk.
Helping our portfolio companies to achieve scale, broaden their offerings and increase geographic reach through value accretive acquisitions is a core competency.