Special Situations and Turnaround Investments
INDUC is specialized in the financing of "Special Situations" including turnarounds. Typically, as a consequence of a special situation a target company cannot (any more) be sold to strategic investors or traditional financial investors and, therefore, requires a specialized investor.
Investments are made in late finance stages i.e. the companies use a validated business model, have developed successfully to critical mass and matured
Special Situation Investments
- Below industrie-average margins (e.g. lack of commercial focus)
- Lack of leadership (e.g. management quality/-problems, succession)
- Heavy impact events (e.g. failed projects/acquisitions)
- Disputes among shareholders (e.g. blockades/„stalemate-situations")
- Divisions spun out of conglomerates (e.g. as non-core division)
- Turnaround Investments - a sub case of special situation investments - means investments in distressed companies. The limitation is blurred particularly since singular negative occurrences/ heavy impact events or failed projects resp. acquisitions can be a special situation as well as turnaround investment at the same time. A concurrence of several "special situation criteria" can also head directly into a crisis and thereby cause other special situations - e.g. problems between the shareholders.