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Our business model focuses on growth through the acquisition of new holdings and enhancing the value of existing holdings.
We pursue our search for new holdings following a standardised procedure, which is subject to constant development. This ensures the rapid, systematic, and precise selection of attractive holdings. Thanks to our personal network, our long established contacts with banks, industrial associations and M&A consultants, we have access to a wide field of interest options. Our history of success in our field is our seal of approval, and that is what enhances sellers' trust in us. The timing of acquisitions is favoured by conditions in which target companies are unresolved successorship problems, or they are having financing or profitability difficulties; it can also ensue from plans by industrial groups to dispose individual units. Our main focus is on industrial companies, whereby we do not restrict ourselves to certain industries. The most decisive factors of our success are our skill in identifying companies with value growth potential and acquiring these. Ideally, MBB Industries will take on the responsibility for a company's employees, management, markets, customers and suppliers from the former shareholder as well as taking on the new holding company’s regional role. Since the trust placed in MBB Industries AG is a highly important factor of its success, the company also moulds its activities in accordance with the personal preferences of the seller. The flexibility of MBB Industries AG concerning the continued involvement of the former management and/or former owner following the acquisition has proven to be a very valuable asset when purchasing companies. This involvement can take the form of granting shares in the company and/or offering of certain positions in the respective portfolio company. We are quite open to the idea of former managing shareholders pursuing a continued interest in an involvement in the company, for example as chairman of the advisory council. |
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Once the acquisition has been finalised, the new portfolio company comes under the wing of the MBB Industries holdings management department. This comprises three sub-sections: the project team, operative management, and controlling. Our aim is to effect a sustained increase in the value of each of our portfolio companies. Project team: Immediately following the takeover, the project team focuses on implementing fast acting cost-enhancement measures. This is followed by measures geared towards ensuring the long-term financing of the portfolio company. The project team devises a strategy aiming at a sustainable, long-term rise in the value of our holdings. In general, the activities of the company are centred on core business areas that offer the most promising potential. In the event that any business areas do not fit in with the strategy, these are sold off. Operative management: We add one of the general managers from MBB Industries AG on the company's existing management board. This allows the portfolio company to profit from the many years of experience that the managers of MBB Industries AG have when it comes to enhancing the value of companies and running them with professional management. The operative management is responsible for ensuring the successful organic growth of the portfolio company and also functions as the contact for various interest groups. It implements the measures plan devised by the project team and identifies suitable candidates for acquisition through a 'buy and build' strategy, also performing the necessary preparations for their acquisition. The M&A expertise which MBB Industries AG possesses is particularly valuable in pursuing this strategy. Controlling: The success of the portfolio companies is steered by its controlling managers. Controlling comprises two essential components. First of all, it implements business controlling (BUC) to monitor ongoing business activities. It also follows the progress of the optimisation measures put into place by the project team in the form of ongoing project controlling (PUC). In general, MBB Industries AG aims to retain its holdings in the long term. In the event of a share flotation, we are open to the participation of the management, strategic partners and investors or even the capital market. Our positive track record shows that the value-enhancement potential resulting from passing on shares of our portfolio companies is reflected in above-average yields. |
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