Blue Cap's approach - Buy, Transform & Sell
As an investment company, Blue Cap AG acquires and backs SMEs from the B2B sector that have clear potential for improving their earnings and growth prospects. Drawing on our cross-sector-expertise, we support our portfolio companies in their strategic and operational development to actively increase their value.
Blue Cap is a temporary owner. The optimal holding period is between three and seven years. However, value enhancement strategies that are designed for a longer period of time can be considered in equal measure.
- Selection according to defined investment criteria
- Due diligence process
- Contract negotiations & closing
The focus is on an intact core business and growth potential
with the development of an investment hypothesis and consideration for our transformation expertise
- Active management within the dimensions
- Realisation of additive value levers together with a strong network
- Optimal holding period:
_ People & Culture
_ Balance Sheet
_ Business Model
We measure our success in creating value against annual NAV growth. Should our commitment no longer facilitate a disproportionately high return on the equity invested, we review the options for an exit.
- Active sales process according to best-owner principle
- Passive sales process
- Proceeds realised
When our potential is exhausted, we actively search for the next owner.
Approach by strategists
are reinvested in new and existing companies for the purpose of further growth.
"TRANSFORM": ACTIVE PORTFOLIO MANAGEMENT
In the onboarding phase, we closely support the company with commercial integration, accomplish defined quick wins from the due diligence process and we get to know the people and the corporate culture by collaborating on projects.
At the end of the onboarding phase, we define the value enhancement projects together with the management team by using our transformation radar, which identifies value drivers in seven dimensions.
“People & Culture” as well as “Balance Sheet”, ”Margin” and “Growth” are the core of our transformation skills and value creation expertise. As a team, we have outstanding capabilities in these dimensions – they are at the centre of our active portfolio management.
In the “Technology”, “ESG” and “Business Model” dimensions, we draw on an excellent network of experts. We act as the initiator and enabler for our portfolio and we take responsibility for project management to make the initiatives a success.