Our Focus
The common thread that runs through all of our investments is the above average operational support we provide to the firms we engage with. Our core principle is to be a hands-on partner and an extension of the management team where appropriate. We roll up our sleeves and get beneath the numbers in order to realize value others often miss.
To achieve this, we have assembled an experienced and complementary team. Our team members have held various senior executive roles across a wide range of industries. We bring extensive experience in de-complexing and aligning the organizational structure with strategy.
Change is at the heart of our investment approach and can take on various forms:
- TRANSITION: from entrepreneurial to professional
At a given point in time, the sale of a family business becomes necessary to free up some capital (“de risking”) and to allow the next generation to pursue their own interests. Private equity firms usually feel more comfortable about transition if they invest in companies with a strong management in place We however, thanks to our operational and managerial background, feel comfortable investing in family businesses where the management structure has remained informal and the decision power has remained largely in the hands of the founder.
We are the ideal investor for families that seek a hands on partner to assist with the challenge of transitioning from the informally managed, unstructured directly controlled model, to a delegated, structured, formally managed business.
- CARVE-OUT: from corporate business unit to stand-alone business
Our team is experienced with complex corporate carve outs helping business units to reposition themselves as successful standalone companies. We have a wealth of insight into the challenges and complexities of this type of investment We leverage our operational resources to quickly transform the operation into a we. ll performing standalone business with appropriate infrastructure to support long term success
- STRUCTURE: from running the business to growing the business
Everything changes when you scale. What got you here won’t get you there. When growth plans call for doing things that are entirely new say, expanding into new geographies or adding products it’s well worth examining the existing organizational structures to see if they’re flexible enough to support the new initiatives Sometimes they won’t be. To support future growth, your company needs well defined business processes and ways of working. Without the proper structure in place, you will have to put more time and effort into just running the business, rather than growing it.
Partnering with us will allow you to manage organizational complexity early, drastically improving the odds that your growth plans will succeed.
- RESTRUCTURE: from underperforming to overperforming
A turnaround is needed in situations of organizational distress, where companies have lower than average profitability within their industry. Typical areas of attention will be increasing revenue and capital efficiency, whilst reducing organizational complexity and costs.
Companies facing financial distress will require similar measures, but due to the short term liquidity challenges, the first step will be to restructure the balance sheet, stopping the cash drain and installing sufficient financial headroom to allow the company to address the root causes of its problems.
Our financial strength, flexibility, speed of execution and extensive experience in executing turnarounds and restructuring efforts enable us to efficiently resolve situations of distress.
Our Philosophy
We believe that long-term success is driven by 3 A’s: Ambition, Action and Agility:
- Ambition
Everything starts with formulating an ambitious growth strategy. Formulating a clear vision and setting measurable goals is the first step in creating enthusiasm and mobilizing people.
- Action
You can spend an eternity creating the best strategy in the world and on paper you should be a phenomenal business, however you fall down on disciplined execution. In our experience, the most common missing ingredient to success in companies is a well-planned and defined action plan for improvement that is being consistently and constantly well-executed. It’s all about doing “the right things right”. Our strength lies in helping organisations translate improvement objectives into a specific set op steps, responsibilities, and schedules for implementing the plans to achieve the objectives. Since we know that what gets measured gets done, we attach a lot of importance to standardized operational and financial reporting, establishing a single source of truth (creating focus) and enabling tracking of progress. Speed of decision making together with speed of implementation of those decisions is crucial.
- Agility
Delivering performance is one thing. Doing this consistently and constantly over time is another thing. Long-term success requires reducing organizational complexity. We have found that many businesses are highly complex with insufficient alignment between people, processes and systems. This reduces the ability of an organization to mobilise resources in pursuit of market opportunities and increases operational costs. We strive to create agile customer-centric organizations that are able to respond quicky to changes in market, customer behaviour, etc.
Our Investment Criteria
We focus on specific business opportunities rather than any particular industry. As a rule, we prefer to avoid investments where success is likely to depend on external events rather than controllable actions. We look for companies seeking fresh perspective, direction and guidance whereby management is open to working collaboratively with us to achieve shared goals. The main investment criteria are as follows:
- Sales: minimum €15 million
- Profitability: EBIT(DA) upon entry less relevant and can be negative provided there is significant room for margin expansion
- Geography: majority of investments to be performed in Belgium
- Stake: active role in governance, through majority stakes or minority positions with significant influence
- Equity contribution: our sweet spot is an equity investment between €2 and €10 million. Larger investments are possible together with co-investors.
Why us?
We provide more than just capital. Choose us as your new shareholder if you are looking for someone who:
- Is able and willing to roll up their sleeves and actively contribute to the execution of the action plan;
- Is able to plug gaps at management level to fill-in temporary roles or to provide additional skills in a transition period;
- Looks beyond spreadsheets and puts in the effort needed to understand the challenges faced by management
- Will be responsive, supporting you with guidance and decisions in a short time frame;
- Brings a structured approach, proven methodologies and a rigorous framework to enable the successful growth of your business;
- Is flexible in structuring transactions to meet the specific needs of the parties involved
- Is experienced in dealing with all aspects of carve-outs and succession, ensuring a smooth transition without disrupting the business;
- Will balance respect for your company’s heritage and culture with the need to innovate and stay relevant in the future;
- Views complexity as an opportunity, not as a threat
- Will be supportive, but at the same time challenge you to ensure that the strategy is as ambitious and though-out as possible
- Offers a fresh perspective, direction and strategic guidance