We seek to co-own and co-manage companies that not only show the usual LBO or growth-capital candidate features (well established market positioning, positive and predictable cash-flows, distinctive product/process technology) but possess some of the following main characteristics:
The potential to achieve scale through add-on acquisitions or manufacturing system re-engineering.
The willingness to adopt the operational best practices available on the market exploiting the capabilities offered by the advanced management softwares.
The need to supplement the existing management team.
The need for strategic refinement or redirection of its business prospects.
We acquire controlling interests or qualified minorities through equity investment of up to Euro 40 million in transactions normally valued between Euro 20 and 100 million.
We can handle larger equity investment (up to Euro 40 million) thanks to the co-investment agreements in place with most of our Limited Partners, which are actually used to invest alongside ourselves.
Through a detailed understanding of the competitive and operational position of each company, we are able to implement a series of transformation initiatives that form the foundation of creating a shift in performance. This goal is normally achieved in three steps:
Company’s management group and organisation must acquire a frame of mind characterised by high degree of “positive disappointment", i.e. dissatisfaction with the status quo and an urgent desire to raise performance to significantly higher levels;
We develop an allocation plan of the company’s scarcest resources (i.e. capital and management time) to those areas in which the company is most competitive and where the highest returns can be generated. We support management with analytical and sparring capacity to develop such a strategy but management remains the driver;
Appropriate change processes in the organisation must be implemented: this is a management task and we will provide assistance without getting involved in day-to-day operating second leveldecisions in order to avoid dilution of accountability and undermining of authority.