DEEN

FOR COMPANIES

OUR MISSION STATEMENT

Stock exchange-listed Deutsche Beteiligungs AG invests in well-positioned mid-sized companies with potential for growth.

For many years, we have focused on industrial business models in selected sectors. With our experience, expertise and equity, we support our portfolio companies in implementing their sustainable value-creating corporate strategies.

Our entrepreneurial approach to investing has made us a sought-after investment partner in the German-speaking region. We have achieved superior performance over many years – for our portfolio companies as well as for our shareholders and investors.

INVESTMENT SITUATIONS

OUR PROPOSITION

Exercising entrepreneurial scope and accepting personal responsibility in building a company’s value – Deutsche Beteiligungs AG offers that opportunity to board members, executives and other experienced managerial staff. Drawing on our broad experience and knowledge, we are committed to being a responsible and reliable partner for management buyouts (MBOs) – the acquisition of a company in partnership with its management. The same applies to management buy-ins (MBIs), in which a company is acquired by external managers with the support of a financial investor.

In both instances – MBOs and MBIs – corporate concepts are needed to further develop a company. The challenges involved may encompass improving a company’s strategic position and operational performance. Frequently, the concepts will include making add-on acquisitions to grow the acquired company inorganically. In addition to equity, Deutsche Beteiligungs AG offers its portfolio companies the experience it has gained during more than 300 transactions in the German mid-market Segment. Over the years, we have built an extensive network of entrepreneurs and industrial experts. Our investment partners benefit from that network when members of our investment team or one of our industrial experts take a seat on their supervisory board or advisory council.

Board members, managers and, in certain instances, other senior executives personally invest in an MBO or MBI. They profit directly from a company’s positive development, while also sharing in the risks.

Companies change, and certain divisions may no longer be at the top of an organisation’s agenda after a strategic realignment; others can develop from a core business to a peripheral activity. Frequently, one appropriate solution is spinning off such divisions or divesting subsidiaries that are no longer part of a company’s core activities.

In such situations, short decision-taking lines, financial strength and an impressive track record make us a sound, dependable partner to vendors. Deutsche Beteiligungs AG is known for its outstanding reliability. Our large investment team is able to mobilise the necessary resources to quickly implement a spin-off or the sale of a business entity. Our market leadership position, the transparency that comes from our public listing and our longstanding market presence make us a trustworthy and esteemed buyer and new owner for employees and customers alike.

Germany is a nation of family-run businesses. They are considered the backbone of the German economy. Many are passed on from generation to generation. However, a successor from the family is not always available when a transition is imminent in the ownership base or, for that matter, in the company’s senior management as well.

Deutsche Beteiligungs AG is firmly rooted in Germany’s Mittelstand. We well understand and share the values that drive this important branch of the economy. Particularly for that reason, DBAG and its advised DBAG funds regularly finance the transition of family businesses to a new ownership base, for instance, through a management buyout. The founding families often remain invested when the succession issue is addressed through a financial investor, thereby profiting from the company’s positive development and ensuring continuity.

Seizing market opportunities is paramount for profitable growth. Yet it takes capital to develop innovative products, enter new markets or make strategic acquisitions that expand a company’s portfolio or geographical presence. Deutsche Beteiligungs AG provides the capital for many such situations – either by way of a direct investment or by equity-like instruments. We have been operating in Germany’s Mittelstand for more than 50 years and are very familiar with the financing requirements of growing mid-sized companies. Our extensive network of industrial experts is accessible for growth financings as well.

Growth financings in the form of a minority investment can also enable a change in a portfolio company’s ownership base. Moreover, additional equity can help to restructure balance sheets. That creates entrepreneurial scope.

We offer a trusting partnership to companies wanting to retain control and develop their businesses with our support. We invest for a defined growth phase of up to ten years and, during that period, share rewards as well as risks.

 

 

OUR INVESTMENT CRITERIA

DBAG and its advised DBAG funds invest in mid-market companies. These are companies that generate between 30 and 500 million euros in revenues. Exceptions are possible in individual instances – for example, depending on the business model. For us, the amount of our equity capital investment is decisive: the equity invested by DBAG and DBAG funds ranges from 10 to 200 million euros.

We aim to invest in companies that are either headquartered or have significant business activities in German-speaking countries – the area known as the DACH region.

Our portfolio companies need seasoned, entrepreneurially-driven managements if they are to develop successfully. We give the management team the opportunity of personally co-investing in the acquisition of their company. That creates an identity of interest between the managers involved on the one side, and our shareholders and investors, who have entrusted capital to us, on the other.

Our experience and expertise is particularly deep when it comes to business models in the mechanical and plant engineering sector and among automotive suppliers, industrial services providers and manufacturers of industrial components. Our focus is on these four core sectors, and most of our transactions stem from these industries. However, numerous companies in our portfolio do not have an industrial background. We have accessed business models and invested very successfully in other sectors as well. What is important for us is a company’s development potential.

Potential portfolio companies have proven business models. They tap their development potential more fully when they expand their strategic position or improve operational processes, for example. A leading market position is important, as are an experienced management team, innovative power and future-viable products. This approach excludes investments in early-stage companies with unproven business models, or companies with a strong restructuring need.

CONTACT

Thomas Weber
Thomas Weber

Senior Vice President, Head of Business Development

Thomas Weber
Name:
Thomas Weber
Telephone:
+49 69 95787-270
E-Mail:

Thomas Weber

Senior Vice President, Head of Business Development

Thomas Weber joined DBAG in 2014.

Previously, Thomas Weber served at an auditing company, a major bank and a mid-market consultancy firm. In addition to business development, he focused on human resources.

Thomas Weber earned a degree in law at the Goethe University Frankfurt am Main.

Thomas Weber

Senior Vice President, Head of Business Development

+49 69 95787-270
thomas.weber@dbag.de

THREE QUESTIONS FOR THOMAS WEBER

  1. What does a Business Development Manager (BDM) do at a private equity firm?

    Our shareholders and the investors in DBAG funds have entrusted capital to us. They expect us to invest it in promising companies. For that reason, it is important that we have, qualitatively and quantitatively, a well-filled pipeline of attractive investment opportunities at all times. That requires an entire range of marketing activities: out of some 300 investment opportunities, transaction ideas or offers, we result four to six corporate investments each year.

    Directing this process is one of my key responsibilities. My colleagues on the investment team are frequently working to full capacity on their primary assignment, the accomplishment of transactions. I therefore organise the collaboration with investment banks and M&A consultants and look for platforms for interacting with capital-seeking companies.

    Beyond that, I attend to our network of industrial experts, which mostly consists of former board members and CEOs experienced in the sectors we invest in. They support our team by contributing their knowledge. This network needs to change constantly to maintain its effectiveness and I am responsible for steering that transition.

    Furthermore, even a private equity company must engage in marketing. The Business Development Manager represents Deutsche Beteiligungs AG at events or fairs and communicates its investment strategy to the market. This allows me to further support DBAG’s market communication and presence.
  2. What does an industrial expert do and how can I become a member of DBAG’s network of experts?

    To us, an industrial expert is someone who, thanks to his or her in-depth knowledge of the industry, backs us in preparing investment decisions and supporting portfolio companies. Industrial experts advise the investment team as it analyses potential investments and they provide support as a strategy is developed for each of the companies. In addition, seats on supervisory boards or advisory councils are often filled by industrial experts.

    If you have a proven track record successfully managing a large internationally operating company in one of our relevant sectors and if working entrepreneurially remains appealing to you, then feel free to contact me.
  3. How does DBAG differ from other financial investors?

    We are known for successful investments in Mittelstand enterprises. In addition to our longstanding market presence from which we have gained extensive experience, we have a focused investment strategy and a high level of transparency. Beyond that, what sets us apart is our proven expertise in Germany’s Mittelstand across various sectors. With individual equity capital solutions ranging from 10 to 200 million euros, we offer a broad spectrum of solutions for mid-sized companies.

    We consider ourselves to be strategic partners to our portfolio companies, and it is important for us that we have trusting, reliable relationships with all of a company’s stakeholders.

Do you have questions for Thomas Weber?