What We Look For
There is no set formula for what we look for and which companies we focus on, but there are some compelling factors and shared themes among our past and present investment choices:
Industry Characteristics
- High underlying growth driven by economic output, macro trends, innovation
- Limited exposure to cyclicality, discretionary consumer spending, short term trends
- Primary focus: Industrial manufacturing, consumer products
- High level of cross-border M&A activity from global strategic players in the sector
Company Characteristics
- Companies ranging from €5mn to €50mn enterprise value
- Ability to grow in multiple avenues, not reliant on a product / trend / driver
- Sustainable and high gross margins (30% and above)
- Low customer concentration
- High level of recurring revenues
Deal Characteristics
- Majority control or significant minority with governance rights and exit control
- Capital structure formation that optimize returns and mitigate down-side risks
- Only friendly transactions
- Reasonable entry valuation