Valuation Logic
Does the acquisition price lie below the replacement value of the substance acquired? It is the lower safety boundary of our investing. It decouples our success from valuation cycles.
Methodology
Three logics. They overlap.
When we explain internally why we acquire a particular company, we speak of three logics. A special situation in which only one of the three applies is not an investment for us.
The Three Logics
Valuation. Integration. Distribution.
Integration Logic
Can the acquired substance be inserted into an existing or planned platform architecture? It is the methodological boundary of our investing. We test it with the same people who will own the integration.
Distribution Logic
Does the integrated substance fit a buyer process that allows higher price levels, larger customers, longer contract terms? It is the upper value boundary of our investing. We test it conservatively.
Three logics, one method. A missing logic breaks the method.
The Structuring. 0 to 180 Days
Securing. Consolidation. Positioning.
Day 1 to 30. Securing.
We assess liquidity, key people, customer relationships, technical stability. No personnel changes. No commercial repositioning. We observe, learn, secure.
Day 30 to 90. Consolidation.
Back office, legal, compliance, IT-operations are migrated to platform standards. Personnel decisions arising from this consolidation are taken quickly and transparently.
Day 90 to 180. Positioning.
Contract renewals are moved to platform conditions. Sales is moved into platform logic. Technical integration begins selectively. restrained so as not to destabilise the running business.
Three Integration Layers
The order is not arbitrary. It is learned.
Organisational. first
Creates the means.
Commercial. in parallel
Creates the value.
Technical. last
Creates the robustness.
Asset-Light
Asset-light is not a business model. it is a precondition.
- no own real estate
- no capital-intensive administrative infrastructure
- lean staff functions that work the same with two more acquisitions as with the existing platform
The platform must acquire, integrate and consolidate quickly. A capital-heavy structure would turn every acquisition into its own restructuring task.