BUSINESS MODEL
AND STRATEGY
Blue Cap's approach - Buy, Transform & Sell
The Blue Cap AG acquires and backs medium-sized companies in the B2B sector in special situations with clear operational improvement potential and value enhancement prospects. These may include situations of upheaval requiring extensive restructuring or unresolved succession situations and corporate carve-outs.
Blue Cap is a temporary owner. The optimal holding period is between three and seven years. We sell our portfolio companies when a successful value development in a different ownership structure appears more beneficial and when they have successfully implemented significant parts of the planned transformation program.
BUY
- Selection according to defined investment criteria
- Due diligence process
- Contract negotiations & closing
_ Special situations
_ Solid core business
_ Driven by underlying trends
_ Revenue 20-200m€ and EBITDA margin 0-5%
_ Majority stake
_ Compatibility with ESG targets
with the development of an investment hypothesis and consideration for our transformation expertise
TRANSFORM
- Active management within the dimensions
- Realisation of additive value levers together with a strong network
- Optimal holding period:
_ People & Culture
_ Balance Sheet
_ Margin
_ Growth
_ ESG
_ Technology
_ 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.
SELL
- Active sales process according to best-owner principle
- Passive sales process
- Proceeds realised
_ Exit plan from day one of acquisition
_ Ongoing preparation for exit
_ Best-owner approach
_ Regular screening for exit opportunities influenced by maturity level, growth potential, macro environment
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.
Blue Cap AG operates
in the following
segments today
- Adhesives & Coatings
- Plastics
- Business Services
- Medical
- Others
Investment philosophy
