Carve-out

A corporate unit that fulfils its potential

Groups often split out business units if their function no longer fits with the company’s strategic alignment. This gives existing or external management the option of establishing the business unit as a separate company in the market by means of an MBO or MBI, and to make the most of previously-overlooked opportunities.

Growth due to independence

capiton acts as a reliable and responsible partner for management and for the selling group, and has a proven track record in helping many companies in these specific situations. The carve-out from the group is just the start. Defining, strengthening and extending a new position in the market calls for a clear strategy, which in turn generates plans and actions. The result is a new, independent company that makes a great impact.

The path to independence

There are many facets to the independence that follows a carve-out. You will finally have the freedom to make decisions away from the group. This can allow the company to become more dynamic, invest and pursue market opportunities.

However, the company may also miss the positive influences that come with group membership, e.g. greater buying power or group wide services. With many years’ experience of these circumstances, capiton can provide advice and concrete actions to support your independence.

Take a look at how we supported our former portfolio company nora systems and our current Prefere-Resins investment. Other examples include our former Lahmeyer, Borsig and EHR.

Alignment of interests

Basic principles

One of the key capiton basic principles is for us to pursue the same goal as our portfolio companies and their management. It’s not about quick profits at any price, but about the long-term health and value-appreciation prospects of your company.

Growth

At capiton we aim for solid growth, fully utilising the company’s potential. This means that we generally reserve additional capital for our portfolio companies to enable further growth. We do not charge our portoflio companies any monitoring fees. Excessive levels of debt are also not part of our philosophy.

Support

capiton actively provides advice and expertise in the dynamic value-appreciation phase, without getting involved in the operational side of your business. You will benefit from our substantial experience of similar cases.

Prospects

Ultimately, you will create a company which is unique in the market, well-equipped for the future, provides secure employment and is more valuable than ever: a company which you, your employees, and indeed we, can be proud of – your company.

Contact us if you want to know more about how we can help you with a solid carve-out concept.

 

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What our portfolio companies say

It’s been clear in the sale process that capiton has experience of carve-out scenarios and knows how to make a success of them.

Christa Hoffmann, CFO
nora systems

capiton has enabled us to begin operating in lucrative areas of business again – areas that we were not able to serve due to our previous Group affiliation.

Konrad Nassauer, former CEO
Borsig

Following the carve-out, we now have a stronger and more professional setup for implementing our growth and acquisitions plans.

Arno Knebelkamp, CEO
Prefere Resins