Frequently asked questions

A possible partnership with investment partners often raises questions. Here are the answers to the most commonly asked ones:

Is my business suited for a transaction with AUCTUS?

AUCTUS invests in German medium-sized businesses with growth potential. There are no restrictions in terms of specific business sectors, but your company should be a leader in the respective sector or market and reach a turnover of at least 10m EUR per year. Within the framework of sector concepts, your company should hold a strong regional market position.

How much is my company worth?

The value of your company depends on a range of very different factors. In general it will be determined as a multiple of last year's operating income (EBIT), whereby the multiple depends on the size of the company, positioning in the sector, historic growth rate and future growth prospects, profit margin, barriers for market entry of competitors, value of fixed and current assets as well as the breadth of the customer base. Thus the multiple is individual and can only be determined after an exact examination of your company.

How does AUCTUS finance an investment in my company?

We will finance a participation in or acquisition of your company with equity, bank loans and, if applicable, mezzanine capital.

How long does the transaction take?

The timeframe depends - similar to the purchase price - on many factors. A smooth exchange of information as well as the experience of all parties participating in the investment deal has a substantial influence on the duration of the transaction. Our target is the completion of a transaction within four months after the first meeting. If necessary, we will be able to implement the transaction faster.

What can I expect from AUCTUS?

All our professionals have long-term expertise in the investment business, especially with regard to German medium-sized companies. This is proven by the large number of successful transactions we have completed in the past. Besides the smooth implementation of the transaction it is important for us to act as a fair business partner. We keep our promises, show respect for your company culture and we are interested in a positive partnership with you.

In addition to the purchase price, which criteria are important with regard to the sale of my company?

Of course the purchase price is important for you, but the transaction will only have a positive outcome when you are dealing with a professional partner who abides by the agreements. Additionally, the duration of the transaction process is of special importance for medium-sized businesses which are managed by the owner.

How does AUCTUS supervise the transaction process?

Two or three experienced professionals look after your project. They accompany you through the whole transaction and answer all your questions, from the first meeting up to the completion of the deal and even beyond it. Each of the professionals is authorised to make decisions so that the transaction process can be implemented smoothly.

What are my responsibilities when I sell my company to AUCTUS?

In order to be able to provide a smooth transaction and attractive purchase price, it is important that you supply us with all necessary information about the company.

What are my responsibilities following the sale of my company to AUCTUS?

This depends on your personal perspective associated with the sale. Some entrepreneurs and managers from previous transactions continue to head the company; others left the company after the transaction. We are aware how important a good management is for the success of a company and therefore we always wish to keep the former owner and/or top manager in the company, at least for the transition period.

What happens to the employees following the sale?

A good and experienced management team is the key factor to the success of a company. Against this background it is wise to give the management financial incentives in order to increase the company value.

But other employees are as important and valued. We treat all employees with respect. We are convinced that clear communication and realistic targets can increase the performance of a company. In the context of strategic considerations, we invest in training for employees and make sure that improvements in productivity increase the competitiveness of the company.

For how long will AUCTUS invest in my business?

Our investment stands out by its feature of close cooperation with the management. Our target is the increase of the company's market value. Together with management we strive for an extension of the customer base, initiate investments in product and market expansion as well as an increase in Research and Development. We initiate strategically wise complementary acquisitions where we expect operative synergies for the company.

In general, we aim for a participation period of three to seven years, afterwards we will hand over our shares to a suitable buyer.