Our investment process comprises of 4 clearly defined phases:
Our investment process normally follows these steps:
First Contact: On the basis of the received documents, we evaluate whether the company fulfills our investment criteria and possibly fits to us. If it does, we generally conduct a company visit and a first meeting with the management.
Letter of intent: In the letter of intent we specify the main parameters of the transaction and our participation, namely the company valuation and its future goals.
Due Diligence: In this phase, we conduct a detailed due diligence process with respect to all relevant business aspects. In addition we might mandate external consultants such as auditors, lawyers, and industry experts. The purpose of this procedure on one hand is to verify the information previously received and on the other to establish a business plan. An exclusivity agreement with the respective company and its shareholders is an absolute prerequisite for us to begin the due diligence process.
Closing of the transaction: In each case the investment is carried out via a NewCo. The sales and purchase agreement is negotiated, where appropriate debt financing is secured and the transaction is executed.
Post investment activities:
Ongoing monitoring of the defined goals and strategies. Pragmatic support of the management by the Grünwald Equity team. All day-to-day operating business activities are the sole responsibility of the company's management. Our main targets are the continuous improvement of the company, dividends and the timely repayment of acquisition related debt. An exit is not planned.