Mittelstand Buy-Outs in Germany
The standard buy-out model does not work well
- Narrow focus on valuation and contract terms does not address important issues that a family owner has
- The typical financially oriented “hotshot” dealmaker is incompatible to the vendor
Large potential for a tailormade approach
- Private Equity could often be the optimal solution for the family owner
- Family owners are often more open once they get to know Arcadia as a trustworthy partner that develops solutions for them
- There are wonderful companies in this space – strong leaders in their niches with high profitability and good competitive barriers
