M&A: Core of our investment philosophy

Photo: Silke Zander

We are investing in the future with a focus on sustainable growth and technological innovation.

We are continually seeking new companies to enhance and strengthen our Group for the long term. Our investment approach centers on the synergy between a buy-and-hold strategy and the preservation of identity and entrepreneurial freedom. This commitment sets us apart from traditional financial investors.

Whenever possible, we finance M&A transactions using our own funds, ensuring that the operating companies are not burdened by acquisition costs. We assess companies and management based on their operational performance. Our Executive Board and division heads bring extensive management experience and consider themselves collaborative partners for operational leadership.

Whenever we can create added value, we provide support to companies on both strategic and financial levels. As an ecosystem, we forge strong partnerships for the future. We actively advance key transformation areas, including innovation, digitization, and sustainability, through ongoing collaboration and dialogue.

6 good reasons for the Possehl Group

Cooperations

We give our companies extensive scope to develop. Irrespective of this, we promote Group-wide cooperation across the individual business divisions. After all, the challenges are often similar and why should the same expenses be incurred more than once? Collaboration is made possible by

  • Group-wide exchange platforms: Possehl Exchange Network and Possehl Learning Hub,
  • cluster system for the regular exchange of expert and user knowledge and
  • our annual digital conference.

Sustainability

The integration of ecology, social responsibility, and sustainable management poses significant challenges for all companies, while also offering substantial opportunities. This includes the growing legal requirements that impose considerable financial and administrative burdens, particularly on medium-sized enterprises. Possehl not only assists its Group companies in executing their own ESG projects but also initiates and collaborates on central projects to drive these initiatives forward.

Digitization

The digitalization of business processes, products and entire business models is a major challenge for all of us. We recognized the complexity of the digital transformation for our companies at an early stage and support them withexpertise in digital transformation and cyber security at Holding;

  • our latest Digital division, which makes targeted investments in digital companies thataddress the problems faced by SMEs;
  • Possehl Consulting, which combines traditional operationalconsulting approaches with innovative ways of thinking from the digital world.

Management expertise

It is our basic understanding that the expertise for operational decisions must lie within the individual companies themselves. Nevertheless, a broader perspective can be advantageous and provide valuable impetus.The division heads and the Holding Management Board have many years of management experience and see themselves as constructive sparring partners in our SME-oriented governance model.

Inorganic growth

The acquisition and integration of companies requires specific know-how. As part of our long-term buy-and-build strategy, we support inorganic growth by proactively searching for potential targets and taking responsibility for/coordinating all necessary M&A transaction process steps up to closing.

Financing

Not all companies are always equally financially successful. This makes it all the more important to belong to a financially strong Group of companies. It is our understanding that a healthy financing structure forms the basis for successful business. Only in this way can we live up to our principle of bottom line accountability.

Participation options

New business division from € 100 million turnover
1
Add-on acquisition for all 10 business divisions
2
Acquisition in the digital segment for reciprocal levers
3
Independent investment for the SME segment and the construction industrywith € 10-100 million turnover
4

Best-Owner approach as the basis for joint success

To make corporate transactions successful, specific criteria must be observed. This list serves as a rough guide.

Industry focus on manufacturing

Stable business model and healthy growth

Sustainable dividend capacity

Majority takeover

Good market position

The Possehl Group welcomes young companies, particularly in our Digital division. We focus on aligning common interests and leveraging our collective strengths. Our objective is to provide solutions for similar digital challenges across the Group, benefiting multiple companies within our network.

Get in touch with us

We place a high value on fostering a trusting collaboration. This commitment starts from the initial meeting: We keep the negotiations in an investment process strictly confidential until the process is complete and both sides are ready to go public.

Dr. Henning von Klitzing

Member of the board, Mergers & Acquisitions

Phone: +49 451 148-216
hvonklitzing[at]possehl.de