Investment Solution is active in providing equity capital that is often crucial for the success of a growing company or acquisition. However, the support and value Investment Solution provides entrepreneurs goes beyond funding. As board members or in direct consultation with management, the managing directors and CEO advisors of Investment Solution can contribute to strategic planning, financing, and key operational and marketing challenges of the company. Investment Solution’s experience with growing small businesses and its network of contacts, including those of its partners, can be a vital resource for the managers of the companies it finances.

Types of Businesses: In private equity financing, Investment Solution targets companies with revenues between €1 million and €10 million and primarily invests in manufacturing and value-added distribution companies. Investment Solution also considers consumer-related investments, including consumer goods, retailers, and restaurant chains, where it has particular industry experience.

Investment Solution does not invest in startups or young companies unless the proceeds are used for acquisition purposes.

Investment Size: Investment Solution invests between €500,000 and €10,000,000 in a company. The company is often a lead investor or an active participant in multi-investor financings ranging from €2.0 to €15.0 million. Investment Solution arranges co-investment capital, including capital from its limited partner group.

Form of Investment: Each investment is structured individually to meet the requirements of the specific situation. Investment Solution usually invests in subordinated debt with associated equity. Other forms of investment are also considered where appropriate. Investment Solution considers both control and minority ownership structures.

Investment Duration: Generally, Investment Solution expects to invest in a company for 5 to 7 to 10 years.

Key Factors in Investment Evaluation: When evaluating an investment opportunity, emphasis is placed on the following:

• Experience, competence, integrity, and energy of management
• Competitive advantages of the product or service
• The target market, which must be of significant size or an attractive niche
• The expected rapid value growth of the company
• The possibility of exit and realization of our investment’s value