Point of departure
The company in question – a subsidiary of a French group – had comparatively modest business activities within the DACH region, generating around 70 million euros of turnover. The group’s goal was to become a more adequate market player and multiply the turnover within a few years.
Due to the existing modest business base, the goal was unlikely to be achieved through organic growth with minor contracts. Furthermore, company appraisals with regard to taking over suitable companies had reached a point that only allowed for a highly selective approach in the case of acquisitions.
On the basis of the parent company’s broad range of expertise, business segments with strong growth potential were identified within the target region. Estimation of future growth required forecasts of global and pan-EU trends from which, in turn, commensurate changes to the industrial structure and the regulatory environment could be drawn. These business segments were evaluated according to specific criteria and the selection then narrowed down further. Ultimately, areas were selected that were deemed difficult for other investors, but played to the strengths of the parent company.
One growth trajectory was the anticipated development of decentralised energy generation in Europe, including waste-to-energy solutions. A further business segment involved gaining a foothold in the management of highly complex infrastructures and industrial parks.
The implementation plan followed a course of organic and inorganic growth. This occurred through commensurate deal origination, project development and strategic sales including development of a network of decision makers, development of comprehensive solution packages and presentation of compelling offers.
Within a short period of time, acquisition and development progressed to the signature stage for industrial power plant projects in contracting and partnership models (e.g. DFBO ‘Design-Build-Finance-Operate’) with accumulated sales in excess of 1 billion euros and a total investment volume of over 500 million euros. Numerous acquisition targets were identified over the same period and the entire process of company take overs implemented up to the offer stage. Exclusivity agreements or entry into the round of preferred bidders were achieved with five companies boasting a total turnover of over 200 million euros.