The Acquisition Process

We naturally assume both discretion and absolute confidentiality during the acquisition process. We also believe that mutual trust, fairness and respect are equally important - both before and after the deal.

A.    Procedure

We wish to ensure that acquisition negotiations are structured efficiently and conducted seriously at all times. Accordingly, we only initiate the actual negotiation process if the information that has been supplied to us can provide a positive impression of the company's earning power, its general field of business and its market position.

In the ensuing negotiations we can then proceed quickly and unbureaucratically, and make rapid, pragmatic decisions; our Supervisory Board is kept continuously informed and involved during the entire acquisition process.

B.    Valuation

The typical areas reviewed as part of a detailed valuation ("due diligence") include Market & Competition, Customers & Suppliers, Finance & Accounts, Taxes, Legal and Environment.

We conduct the commercial portions of due diligence ourselves; here, we believe it is important to interview selected customers and management staff in order to better understand the corporate culture and non-quantifiable corporate values. For formal due diligence processes, we work together with distinguished external advisors such as auditors, attorneys, tax consultants and market research institutes.

C.    Financing

As a rule, we finance acquisitions from a conservative mix of equity and outside capital. While the equity portion is provided solely by ourselves, the outside capital portion is financed via traditional bank loans.

We view a limited seller's loan as an expression of confidence in the quality and sustainability of the company being offered for sale.