Strategies in deal sourcing

Looking at target prices only from an abso­lute perspec­tive is too short-sigh­ted. Rather, it is a matter of using one’s own indus­try exper­tise to iden­tify value levers in compa­nies that are not obvious. Thus, despite an appar­ently high purchase price, very attrac­tive returns can still be achie­ved. EMERAM Alpha Scoring is used to find these undis­co­vered poten­ti­als. Alpha scoring allows us to iden­tify impro­va­ble func­tions in the company or unused fields in the market in advance of the actual tran­sac­tion. This is because many compa­nies do not operate opti­mally in all areas of their value crea­tion and thus have growth poten­tial, for exam­ple. in the area of marke­ting, but also through inter­na­tio­na­liza­tion or by imple­men­ting a buy and build stra­tegy. Through alpha scoring, we iden­tify a target’s under mana­ged areas and blind spots before we sign, and are imme­dia­tely ready to make the company perma­nently better after the acquisition.

EMERAM is a mid-market fund focu­sing on the five sectors Consu­mer, Retail, Indus­try, Busi­ness Services and Health­care. In Consu­mer and Retail, we have made three deals in recent months, as we have iden­ti­fied very good targets here with Boards and More, Bench and Hussel, which we are now syste­ma­ti­cally deve­lo­ping further toge­ther with the respec­tive manage­ment teams.

In parti­cu­larly liquid times, such as we are curr­ently expe­ri­en­cing, compe­ti­tive pres­sure natu­rally increa­ses, espe­ci­ally for those who cannot gene­rate deals them­sel­ves but have to rely on auctions.

EMERAM has ther­e­fore focu­sed from the begin­ning on deve­lo­ping non-stan­dard and proprie­tary deal flow. The basis for this is the combi­ned 120 years of private equity, consul­ting and manage­ment expe­ri­ence of the six foun­ding part­ners, as well as our networks that have grown over deca­des. We focus on situa­tions in which we can create real added value for a company with the EMERAM Edge. Again, that does­n’t mean we don’t parti­ci­pate in auctions, but we are able to create a variety of deal oppor­tu­ni­ties on a perma­nent basis, which gives us the ability to select the truly best ones.

EMERAM is a First Time Fund, but it is anything but a First Time Team. As alre­ady mentio­ned, the six foun­ding part­ners have deca­des of expe­ri­ence in private equity, as well as strong opera­tio­nal exper­tise in senior manage­ment and advi­sory roles. This combi­na­tion enables us to analyze even complex situa­tions from diffe­rent angles and to call in the most suita­ble experts. Based on our findings, we can then act quickly, in a struc­tu­red and relia­ble manner. Whereas private equity used to be charac­te­ri­zed to a not incon­sidera­ble extent by finan­cial engi­nee­ring, today more than ever distinc­tive exper­tise in the struc­tu­ring of complex tran­sac­tions, but also entre­pre­neur­ship, opera­tio­nal exper­tise and stra­te­gic fore­sight are in demand. Since EMERAM combi­nes all these compe­ten­cies, others also see us as a highly quali­fied part­ner, on the way to beco­ming a local cham­pion in the mid-market segment.