Value increase and performance optimization require the right partner – it’s a truffle-hunting business that h&z knows well
While market liquidity has clearly increased in recent years, the pool of possible investment targets has been stagnating. This has resulted in tough competition to find attractive candidates for takeover, leading in turn to high prices and acquisition multiples. A “normal” return seems a distant thing. So it now appears that traditional growth strategies are no longer enough to sustainably increase profits. Private equity firms are now having to penetrate much deeper into the organizational structure of their investments and optimize their business performance. It’s also becoming essential to develop new methods for increasing value. h&z has a wealth of experience in this area. In particular, we have the industry expertise needed to activate the right levers. This is the only way to increase revenue and to take into consideration the often-neglected cost side as well.
The more competitive the market, the harder the search for promising acquisition targets. Thanks to substantial industry knowledge and a large international network, we’re able to identify suitable acquisition targets and lay the groundwork for later success by using the right strategy early on. In this respect we benefit from our many years of working for large, global companies. This has allowed us to maintain close contacts with renowned experts from different industries, topics and regions. Their information, combined with our expertise and multi-level screening process, will pave the way to quick and well-founded evaluations to determine if a transaction will be successful.
A carefully conducted risk check, or due diligence, for all classical industries including automotive, aviation, telecommunications plant construction, and mechanical engineering is essential for a successful private equity transaction. Our goal is to already identify cost reduction potentials during this phase, which in turn will lead to value increases resulting in higher margins. This significantly improves the leeway for investors during the bidding process. We have a very solid track record in this and we’ll work together with you to optimize the chances of a successful acquisition that will benefit your business. We use various levers to evaluate the business plan along with the strategy so we can assess the target company’s likelihood of success, which we’ll then streamline with the investment hypothesis of the investor.
A secure and well-founded approach will lead to a smooth succession after an acquisition. We therefore support the complete acquisition phase both strategically and operationally. For the portfolio companies, h&z develops and integrates short and mid-term programs with a focus on recognizing and utilizing cost reduction and value-increasing potentials. To that end, we’ve developed a 100-day program for the strategic and cooperative setup of measures used to hone in on the identified potentials. To do this, we conduct management workshops and establish a project management set up. The first ‘quick win’ initiatives will emerge during this timeframe. Our approach is characterized by a focus on implementation that’s evidenced by our award as a Hidden Champion for Business Excellence.
Step by step towards a successful exit
You can optimize the financial goals of your company by using a good exit strategy. Our joint venture with Transaction Engineers has a remarkable track record of successful company sales. From the right point in time to the right buyer, we support you every step of the way during your exit strategy.