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 results 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. In order to sustainably increase profits nevertheless, traditional growth strategies are no longer sufficient. Today, private equity firms must penetrate much deeper into the organizational structure of their investments and optimize their business performance. It is also becoming essential to develop new methods for increasing value. h&z has a wealth of experience in this area specifically along with the industry expertise needed to activate the right levers. This is the only way not just to increase revenue, but to consider the often-neglected cost side as well.
The more competitive the market, the harder the search for promising acquisition objects. Thanks to all profound industry knowledge and a large international network, we are able to identify suitable targets for the companies and lay the groundwork for later success by using the right strategy early on. Here, we benefit from our many years of working for large companies with a global footprint. This allows h&z to maintain close contacts to renowned experts from different industries, topics and regions. Their information combined with our expertise and our multi-level screening process allow for quick and well-founded evaluation to determine if a transaction will be successful.
A carefully conducted risk check (Due Diligence) for all classical industries from automotive and aviation to telecommunications all the way to 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 lead to more value increase resulting in higher margins. This significantly increases the leeway for investors during the bidding process. Based on our business excellence expertise, we work together with the companies towards a future acquisition for business optimization. Using various levers, we evaluate the business plan along with the strategy and likelihood of success of the target company and streamline it with the investment hypothesis of the investor.
A secure and well-founded approach implements a structured succession of company acquisitions and takeover modalities. We therefore support the complete acquisition phase both strategically and operatively. For the portfolio companies, h&z develops and integrates short and midterm programs with focus on recognition and utilization of cost reduction and value increase potentials. To that end, we have developed a 100-day program for the strategic and cooperative setup of measures used to hone in on the identified potentials. To do so, we conduct management workshops and set up a respective project management. The first “quick win” initiatives are also realized during this timeframe. h&z is characterized by an implementation oriented consulting approach that is evidenced by our award as a Hidden Champion for Business Excellence.
Step by step towards a successful exit
With a good exit strategy, companies can optimize their own financial goals. The h&z joint venture 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 along the way of your exit strategy.