Almost 50% of private companies in Germany are currently exposed to a major succession problem. According to recent surveys, this situation will deteriorate in the years to come. Early settlement of such problems is important not only to secure the continuity of the company and transfer the company into the hands of a new owner, but also to guarantee that family property is protected and a realistic purchase price can be achieved.

There are different succession settlement alternatives:

  • Sale to financial investors
  • Sale to strategic investors
  • Sale to existing management (MBO) or external managers (MBI)

Financial investors and strategic investors have two very different decision-making processes when considering an investment. Financial investors in general focus on high profitability and mid-term divestment strategies (exits), whereas strategic investors tend to evaluate potential investments based on their strategic value including synergistic effects to gain market power and thus are generally ready to pay higher (strategic) prices. Sales to managers can only materialize if the managers have sufficient financial means and therefore usually require a contribution from financial investors.

SBCF has access to a worldwide network of financial and strategic investors. Being aware of their acquisition criteria, business approach and general investment attitude, SBCF is well-positioned to bring appropriate investors into the sale process.