We are experiences investors with a clear focus: Successful, small- and medium-sized software companies across Europe that have a sustainable business model. We prefer situations in which we can help owners and management teams to successfully reach the next step in a company’s life cycle. To best support such transitions we offer our broad experience from similar situations as well as a proprietary toolbox with software-specific levers for organic value creation.
- Software firms in Europe, focus on DACH region
- EBIT range between €0.5M to €5M, usually resulting in an Enterprise value of €3M to €75M
- Well-run businesses:
- Positive EBIT-margins
- Largest customer <33% of sales
- Project business <50% of sales
- Situations in focus: Shareholder buy-outs, successions
(not in focus: restructuring, venture financing)
- Typically majorities >51%, but open to minorities in certain cases
We assist entrepreneurs in typical situations of a successful company where a change in ownership can help both entrepreneur and the business.
We enable a step-wise succession with the professional support of our broad and proprietary network of managers, entrepreneurs and headhunters.
We also ensure that key managers can be retained in the turbulent time of an upcoming succession.
In both situations, we typically pursue a Management Buy-Out (MBO) or Management Buy-In (MBI) in order to make the key people participate in the value creation. As a result, the incentives are perfectly aligned.
Our offering: Tailor-made solutions ensuring continuity from one generation to the next. We help to develop and implement a tailor-made succession plan that has several elements and allows the entrepreneur to step-back in a swift yet controlled manner.
Entrepreneurs often face the challenge that they successfully developed their business, but have not been able to safeguard some of the wealth created. Successful companies often require the earnings to fuel further growth.
Furthermore many markets are increasingly affected by the disruptive forces and accelerating changes in the competitive landscape, making the future less certain than ever before.
We offer entrepreneurs to remain in the driver seat and to retain a significant share of their company post our investment. This enables them to safeguard a portion of their wealth behind a personal ‘firewall’, and to participate a second time some years later when exiting jointly with BID Equity. They practically sell twice and fully particpate in the additional value creation.
The companies we invest in each have had their individual growth story, but at certain points this growth cannot be financed from within or through traditional bank financing.
In such situations we can provide both the capital and experience to put it to best use. For example, we can help design and execute a buy & build strategy to roll-up markets, enter new geographies, or to acquire new products and capabilities.
After many successful years companies often reach a point at which a change of direction is required to grow to a new level of performance and professionalism.
This is where our B, I and D levers fully come into play: We provide the experience to develop a tailored transformation program, and we work hands-on with the management teams to make this vision become reality.