Sustainable Capital for the German Mittelstand

 

Sustainable investment in the German “Mittelstand

Alvia Capital is an entrepreneurial investor based in Hamburg, Germany. We offer a long-term and sustainable approach towards company succession. Our financial capacity is based on self-funding as well as the resources of a German family.

 

Our objective is to preserve the German “Mittelstand” by providing capital as well as sustainable value-creation. This is why we follow a long-term perspective and are not exit-driven. Furthermore, we will run and be responsible for day-to-day operations of the respective company.

 

We invest in a broad range of solid “Mittelstand” service companies — with stable and/or growing revenue with an EBIT between €0.3m to €1.5m

About us

 

Investment

focus

Preserving your legacy, while thriving for future success

With sufficient financial resources and a long-term investment horizon, we are a hybrid between „Hands-on Entrepreneur” and “Investor”. We never aim for short-term exits to make a “quick buck”. We and our investors are fully aligned on a sustainable value-creation approach und understand, that this requires a long-term time horizon and active involvement in the daily operations.

We provide a good home for your company

100% focus on your company

  • All our attention is devoted to your business. We are planning to build an "industry holding" with your company at its centre

  • For strategic investors or traditional financial investors, your company is part of a larger portfolio or group

Operational responsibility of the day to day

  • We actively work on the sustainable development of your company and assume operational responsibility in day-to-day business

  • Strategic investors deal with the management of the Group and act in the interests of their Group shareholders. Whereas financial investors do not assume operational responsibility and mainly engage in the purchase and sale of companies

Long-term view rendering exit thoughts

  • We want to create a business for the next generations to come and thus we are pursuing a sustainable approach without exit pressure

  • The goal of financial investors is a profitable resale, pursued by all means. Whereas strategic investors want to integrate their business into the Group and exploit cost synergies

Swift and flexible transaction

  • Your company has our full focus and commitment during the transaction phase. This ensures a quick and flexible process execution

  • Financial investors work on multiple transactions simultaneously and follow rigid structuring rules. Strategic investors are known for long bureaucratic processes dictated by organizational structures

Your key contacts

Hans-Cornelius Kölln

Partner​

Max Tymoszuk

Partner​

 

"Mittelstand" small and medium enterprises in the "Old Economy"

We acquire majorities > 50% of successful Mittelstand companies and are not limited to individual industries. Every company is unique, and we would like to take this into account with a correspondingly broad search profile:

  • Service and craft ("Handwerk") companies

  • Strong Market position in a niche or regionally focused market

  • Headquarters in Germany

  • Stable or growing revenue

  • EBIT from €0.3m to €1.5m with a focus between €0.5m and €1.0m ("Sweetspot")

  • No dependency on specific customers or suppliers

  • More than 20 FTEs

  • Only majorities above 51%

  • No ventures or restructuring cases

We understand that most companies we target are the result of many generations of hard work and as such an outside succession is a highly emotional and personal topic for the owner.

 

Each transaction is unique and is driven by the specific characteristics and needs of the company and the respective owners. We have a result-oriented approach to each transaction, with structures that are tailored to those characteristics and needs.

 

We engage in traditional succession situations where the managing owner is looking to retire. At the same time, we are open towards the owner or selected employees to re-participate in the future success of the company (e.g. via partial sale, earn-outs).

Value

creation

 

Sustainable value creation  

We value a structured transition of the business and management. In a pre-defined transition phase, the day-to-day business will be handed over. We will act as sole management or as part of the management team in running daily operations. Furthermore selected employees will be prepared for exciting new roles and will be given further responsibilities.

 

This will guarantee the preservation of the company legacy and culture and will also build the foundation for a successful future.

 

Value levers will be based on active management, establishment of marketing and sales strucutres, digitalization and further acquisitions in a “buy-and-build” format. Further value creation potentials will also be identified with the current management and employees during the transition phase.

Every company is unique. Thus, we are  flexible in the design of the process and the transaction/financial structure:

  • We want to provide financial security for the seller to enable a carefree retirement

  • If the seller wants to remain operationally active, participation in the future success is possible (e.g. partial sale, earn-outs)

We want to work together with the seller to make the transition as smooth as possible.  We support the current owners secure and gradual withdrawal from daily business

 

We value a structured transition, i.e.:

  • Transfer of operational and technical know-how

  • Transfer of essential customer and supplier relationships

  • Generating trust among the  employees

We will become part of the management team and take on responsibility for the daily business. We will strengthen the 1./2. management level—while handing over more responsibility to "internal experts

Our clear focus is on:

  • Organic growth: Develop or expand marketing and sales capabilities

  • Digitalization: Digital structures will make processes more efficient and free capacities

  • Inorganic growth: Establishing an "industrial holding" enables internal specialization and focus

Contact

 

Alvia Capital GmbH

​Neumühlen 40

22763 Hamburg

Germany
 

​Mobil:   +49 151 614 890 97

eMail:   info@alvia-capital.de