Selection Criteria

Companies compatible with the investment strategy undergo due diligence as potential investment. Important areas of a review are:

• Industry: size, stability, growth, intensity of competition, perspective, barriers to entry
  
  
• Companies: (historical) development, potential earning power, growth potential, strategic position (no extreme dependencies)
  
  
• Product: product acceptance, market share/position (e.g. protected market niche), quality, brand image/-profile, product innovation, intellectual property/patents
  
  
• Turnaround related criteria
  
  • Viability of core business (solid brand name and customer base, competencies)
  • Comprehension of the - ideally internal - causes and available potential for solution
  • Qualification of management and staff, willingness for cooperation (workers´ council etc.)
  • Existing options open to and future potential to react to changes
    
    
• Financial: time to break even, indebtedness, liquidity requirement, investment volume/purchase price, time factor (duration of turnaround), collaterals, exit-potential, rate of return

Targets should have "core assets" - at least a potential for this, for example leadership in the industry/niche, a strong brand name or other substantial and sustainable competitive advantages.