General Information

Location: Southern Germany
Industry: Industry
Type of Company: Multiple options (Electrical industry, Mechanical engineering, Metal industry, Packaging industry, Plastic and rubber, Transformation, Combat and shipbuilding industry)
Legal entity: Sole proprietorship, Partnership, Corporation, Ltd., Sole trader, Silent partner, GbR, Partnership company, General partnership, Limited partnership, UG, GmbH, Stock corporation, Cooperative, KGaA, AG & CO KG, None, Foreign legal entity

Type of Transaction

Shares
Company life phase: Startup phase, Young company, Established for over 5 years
Employees in FTE: 10 - 25
Type of Buyer: Strategic acquisition

Financial Information

• Revenue last fiscal year: € 1,000,000 - > 5,000,000
• Price expectation: € 0 - > 5,000,000
• Earnings before tax: € 0 - > 5,000,000

Company History / Background

Target companies:

• Industry: Mechanical engineering, Metal construction, Manufacturing industry, Logistics
• Key figures: Revenue 1.5 - 20 million, min. 10% EBIT (Earnings before tax, adjusted)
• Region: preferably Southern Germany

Success Factors

My two co-partners and I bring the necessary technical background as former engineers at Daimler and Porsche. Additionally, we have successfully built our own company over the past three years: our real estate trading company. This company now employs 18 people, achieved a revenue of around €4.5 million in 2023, and generated an EBIT margin of about 10% – despite the challenges posed by rising interest rates, which have severely impacted many competitors. Our success strategy is based on innovative marketing methods: We attract our customers and employees organically through Instagram and our podcast, which ranks in the top 5% of video podcasts on Spotify.

Unique Selling Propositions

Our mission is to lead medium-sized mechanical engineering companies like yours into a successful future. We understand the typical challenges of the industry, such as the shortage of skilled workers, marketing, and digitalization/AI, and we have made it our task to actively address these issues in the context of corporate succession. This allows these companies to continue focusing on their technical strengths and remain competitive.

Purchase Price Structure

Average EBIT of the last 3 years as a multiplier of 4 – 6x as the purchase price, plus cash reserves minus liabilities. Seller loan 15 – 35% over 3 – 8 years, interest-bearing. For financing discussions, we are happy to work with the company's house bank or use our bank contacts and private investors. A subordinated seller loan is required for financing as well as to motivate the seller for a smooth transfer of the company. Consulting contract as an additional purchase price component over x years. The seller's participation is only set for 6 – 9 months and, if both parties deem it reasonable, optionally beyond that. A higher purchase price is conceivable as an earnout as a revenue commission.