Investment Principles

Investment Principles for Special Situations and Turnaround Capital

Continuation of the business – Going Concern

INDUC is a partner of medium sized companies and invests in businesses on a going concern basis (no “corporate raider”).

Entrepreneurial Freedom of Action (full discretion)

Turnaround-Investments in distressed companies take place in phases when action alternatives have become drastically reduced and where non specialized investors cannot take an investment any more. Also specialized investors like INDUC only can take the risk if all necessary actions for a consequent turnaround can become realized at any time and without delay in order to save the company from more damage and the menace of insolvency. Apart from majority participation a complete control under company law - without any blocking minority is a condition of engagements ("control by corporate law"). Accordingly the same applies similarly for a managing director who becomes normally appointed in addition to the existing mangement ("control of operations")

Active Management Support

Active management support becomes provided by an experienced Management-Team with many years of operating management experience, especially in the field of turnarounds. In addition access to coaching- and sparring partner as well as to a network of specialized consultants (auditors, tax advisors, lawyers, business consultants) can be provided.