Torben Seikowsky, Managing Partner of i-capital, welcomed more than 100 guests to the Braunschweig M&A Forum 2019. “The many positive responses from last year were the reason to build on that format,” he explained in his welcome address. However, in his in-depth market assessment, the specialist for corporate acquisitions and sales also made it clear that there were some uncertainties in the current transaction market due to political instability and weakening economic outlooks. Particularly in the SME sector, however, there continue to be exciting developments and market opportunities, according to i-unit group, which—alongside i-capital and four sister companies—specializes in SME consulting. Tilo Geipel, Director and Authorized Signatory at i-unit Consulting GmbH, who as site manager had taken on the organizational preparation of the evening, was also pleased with the strong response: “Once again, this shows that there is enormous demand for M&A topics in the region, and we are happy to fill this gap together with our experts.”
As in the previous year, Dr. Thomas Halberkamp of the law firm Luther provided insights into legal requirements in transaction business. Together with his colleague Dr. Sebastian Rabe, he addressed options for structuring majority and minority shareholdings this year. For example, models in which investors are majority owners while operational management is held by minority shareholders are becoming increasingly common. The opportunities to make very individual arrangements on the exercise of shareholder voting rights in such cases are considerable, but so are the risks of disputes if these rules are not clarified at the outset. GmbHs offer broader options here than stock corporations, reported the two legal experts, who also provided concrete examples of possible arrangements.
Afterwards, Christian Stahl, Managing Director and Authorized Signatory of i-capital, spoke about current trends in the M&A market and developments in the private equity sector. The success of private equity, he said, is based on the ability to select investments in companies with value creation potential. In times of Donald Trump and Boris Johnson, this is not always easy, he emphasized, but there is still potential.
Entrepreneur and shareholder of KDH Werbetechnik GmbH, Michael Bartesch, seamlessly followed with a practical report. Bartesch had worked in the management of various companies for many years before deciding to take on entrepreneurial responsibility himself. “I was already on the verge of taking over a company when the owner changed his mind about selling,” he said of his initial efforts to acquire a suitable business. With KDH Werbetechnik, the acquisition ultimately succeeded, though negotiations were no less nerve-racking. “In retrospect, the takeover was not only strategically but also emotionally demanding,” he reported, noting that he was very grateful to have had i-capital as both a professional and personal sparring partner. The company, which specializes in advertising technology, employs over 70 staff and primarily supplies large corporate clients with outdoor advertising solutions. Since the takeover by the new management, it has achieved important strategic growth steps.
In the concluding panel discussion, Phillipp Amereller of Silver Investment Partners, Sebastian Neiss of CIC Capital, and Benjamin von Riewel of CARISTO Management provided insights into the investment activities and strategies of private equity companies in the SME sector. All three firms invest in medium-sized businesses. Entry into family-owned companies is a particularly interesting area, as these strong businesses nevertheless face challenges such as succession planning or expansion strategies. While transaction business is often routine for large corporations, medium-sized companies are frequently confronted with such investment situations for the first time. Professional advisory services in transactions and, above all, in preparation are therefore very important in order to fully seize opportunities.
After this exciting exchange of ideas and practical insights, guests enjoyed numerous networking opportunities between entrepreneurs and transaction experts from various fields during the barbecue in the garden of the i-unit group. i-unit group Board Member Andreas Tieftrunk saw good prospects for a reunion next year: “The combination of different perspectives on SME transactions in this form is probably unique in northern Germany; a good reason, therefore, to make the M&A Forum in Braunschweig a tradition.”
This year’s event was supported by Volvo Autohaus Schmetzer from Braunschweig, Hofbrauhaus Wolters, and Wissenswerft GmbH from Hanover. “We are, of course, very pleased to have found strong partners who supported us on this evening, and we would like to express our sincere thanks to them,” Seikowsky concluded.
