INVESTMENT
PROCESS
The process differs from case to case and is tailored to the individual situation. Typically, however, the process is divided into three main phases and usually takes three to six months from initial contact to completion of the transaction. Discretion takes top priority for us and the exchange of information is confidential.
PHASE 1: Discussions
PHASE 2: Investment decision
PHASE 3: Completion
PHASE 1
Discussions
Initial contact Normally initial contact is made via our broad network. We also continually screen for potential and suitable (add-on) acquisitions ourselves.
Initial assessment First we review the information at hand (product information, target market, organisational structure, finances), followed by a face-to-face meeting in which we compare the interests of the buyer and seller. We take economic parameters and our wealth of experience into consideration and submit a first indicative offer.
PHASE 2
Investment decision
Due diligence This begins with a detailed examination of the company, sometimes with the help of external experts, reviewing the market, customers and competition (commercial due diligence), finances (financial due diligence), taxes and law (tax & legal due diligence). At this stage, the management team meets with its advisers to obtain as comprehensive as possible an overview of the key areas of the company and in particular to draw up a joint strategy for the company’s future.
Decision/final offer Once the due diligence process has been completed, the Management Board decides whether or not to submit a final offer based on the results of the due diligence review.
Contract negotiations After reaching an agreement on the final offer, negotiations and discussions on key contracts such as purchase agreements, management participation and shareholders’ agreements follow.
PHASE 3
Completion
Signing Once contract negotiations are complete, the contracts are signed and usually notarised.
Closing In the event that certain steps are still required before the contracts can be completed, there may be a gap between the signing of the contracts and the completion of the transaction (closing). This can range from a few days to several months. Closing the transaction marks the economic transfer of the company and requires, among other things, payment of the purchase price.
