Screen, examine, ensure.
We get going long before we get going.
Some people reduce a good investment to the time of entry and the moment of the exit. We think the intense planning phase beforehand is crucial as well. Before we even start to analyze a company, the following criteria have to be met:
- It should not be listed on the stock exchange.
- It is operating with innovative solutions in existing growth markets, achieving an attractive margin.
- It has a clear competitive advantage in its industry.
- It provides a convincing, plausible business model.
The specialization in selected industries with a promising future helps us to focus on the essentials. We focus on megatrends in the areas of food, health, lifestyle and consumer goods.
If the company fulfills these requirements, the assessment will follow: we conduct a due diligence and we simulate different scenarios. Additionally, we have access to a broad network of specialists and consultants.
Only if we are deeply convinced will the crucial phase be launched: the actual negotiation with the company. During this process, we consistently represent the interests of our co-investors. We only invest in companies which we can have a positive influence on. This includes a seat on the board of directors, honest interaction with the operative management as well as a clearly defined exit strategy. This may be a trade sale to other investors or an initial public offering (IPO).