The sale of a company is an important decision. With an equity partner you start a long-term partnership that should be well prepared on both sides. From a transaction with AUCTUS you can expect to proceed smoothly, confidentially and time efficiently from the first contact up to the participation.

Although each participation is very individual, it is possible to describe the several stages of the cooperation in general. They can be subdivided as follows:

1. First contacts - to get to know each other

Initially we assess both sides to find out if we are suited to each other. Within this framework we check whether the offered participation matches our criteria and might be of interest for our portfolio. Usually we look at the key data and the future business plans. During the first meetings we explain which role AUCTUS could play within the scope of a shareholding and we outline the main terms. If mutual targets can be found, we will together draw up a "Letter of Intent". Afterwards the phase of intensive examination begins - the so called "due diligence".

2. Due Diligence

During the due diligence we try to understand a company as profoundly as possible within a few weeks in order to identify opportunities and risks. We focus specifically on the business strategy, the market environment, the company's strategy, the technology, the competitive environment and the potential for operational improvements. In addition we examine the financial data and check it for plausibility. These processes take place in close cooperation with the seller - confidentially and with as little as possible influence on the daily operational business.

3. Contracts and completion of the participation

Simultaneously with or immediately after the completion of the due diligence we will draw up the contracts for the participation. No matter how large our shareholding, we always provide for the right of co-determination in important strategic decisions. In general, we do not intervene in the daily operational business.

4. Period of shareholding and growth

The shareholding is the longest and most important phase of the cooperation. The daily operational business remains under control of the management. We support the management and set impulses for growth, operational improvements and the strategic development of the company, e.g. through restructuring of the financing, procurement of subsidies, support in terms of strategy, sales, controlling, risk management or takeover of competitors. For this purpose we have developed our own program for value enhancement, which enables us to systematically identify potential for improvement and to implement it in cooperation with management and advisors. Thus we are able to considerably increase the value of the company.

5. Exit aims for substantial value enhancement of our portfolio companies

Once this is achieved, we usually agree on an exit state with all shareholders reflection both, the interests of the investors as well as of the management.

These are the most frequent exit scenarios:

• The management of the company buys the shares
• The partner, e.g. the entrepreneur's family, buys back the shares
• A new private equity fund replaces AUCTUS (so called secondary buy-out)
• A strategic buyer in the respective sector buys the whole company
• The company goes public

AUCTUS - The partner for medium-sized companies!

AUCTUS Capital Partners AG
Brienner Str. 7
80333 München

Tel. +49 (89) 15 90 700 17
Fax +49 (89) 15 90 700 49
Website: www.auctus.com

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