Succession

Your life’s work takes the next step forward

The impact of succession arrangements is far-reaching. You can rely on capiton to help you overcome the challenges faced in finding the right solution for your company.

If the baton is becoming heavy

Many entrepreneurs do not have a “natural successor” from the family ready to take over. There is often no suitable successor internally. It may also be that the intended successor has already been identified but is not yet ready to shoulder the burden alone, meaning that an interim solution must be found.

capiton has many years of experience in situations like these. We know that in these circumstances, if you sell the whole company, you are likely to only reap a small proportion of what you have built up over the years; capiton helps find a solution that suits all parties.

Create more value before you sell

Use the time remaining for solid value creation before you hand over your company. We focus on enhancing the long-term performance of your company by taking strategically astute steps. We are very flexible in creating transaction structures and aligning our actions to your needs and requirements.

In particular if your shareholder structure is complex, there may be situations in which the interests of individual shareholders vary widely. We are very familiar with such situations and can support stakeholder restructuring to ensure a smooth company succession. Find out more by taking a look at our LAP Laser investment.

Control your succession with capiton

In this transition phase, capiton buys an interest in your company; this could be a majority or a minority share. Your involvement in this process is of huge benefit, so you specify a period during which you remain at the helm, and then gradually transfer control of the company to new managers. capiton will be there to help you strengthen your internal company structures or to implement an MBO or MBI.

Benefit: Often, it’s not just your heart and soul that you put into the company, but also many of your assets. With the help of capiton, you can diversify and restructure your assets, for example in the course of what is known as an Owner-Buy-Out. Take a look at our previous Poli-Tape investment for an example of this.

Together with capiton, you will also invest in your company’s future. As a financially sound partner, we enable you to make strategic acquisitions, or to take steps to help you grow and give you the opportunity of increasing your company’s value. You will also benefit from our industry expertise, as well as advice and support during the entire investment term. As a co-shareholder with an Advisory Board function, we support and advise you without getting involved in everyday business operations.

At the end of the joint investment phase, capiton helps you find a buyer for your company, and to successfully arrange your exit and ours. The increase in your company’s value during the investment phase means you will benefit once more from the sale of your shares.

The result is the transformation of your life’s work into a stronger company.

Examples of such processes include our Trioptics investment, and our previous RTS investment.

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; instead, we focus on 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

At the end of the process you will hand over your company, now even better equipped for the future and more valuable than ever before: a company which you, your employees, and indeed we, can be proud of. In other words: your life’s work.

Contact us if you want to know more about how we can make your succession plans reality.

 

Email

What our portfolio companies say

capiton understands my business and the specifics of it. The capiton team is the ideal partner to work alongside.

Eugen Dumitrescu, CEO and Founder
Trioptics

capiton made it possible for us to reorganise our shareholder structure, making our company fit for the future.

Uwe Wache, CEO
LAP Laser

Bringing capiton into our shareholder structure was the right decision: with capiton’s support, we have been able to further develop my company before handing it to a new owner.

Josef Raith, Founder
RTS