Succession

Succession planning: the next step for your life’s work

Making suitable arrangements for your company succession is always a decision with far-reaching implications. You can rely on capiton to help you overcome the challenge of finding the right solution for your particular circumstances.

Create more value before you sell

Use the time remaining before you hand over your life’s work to a successor to create solid growth in value. We focus on enhancing your company’s long-term performance by taking strategically astute measures. We are flexible about the configuration of transaction structures and consistently align ourselves to your needs and requirements as the business owner.

When it gets harder to pass the baton

A lot of companies do not have a successor from within the family who is ready to take over at the helm. There is often no suitable successor inside or outside the company who can also come up with the necessary funding. Or perhaps your intended successor has already been determined but they are not yet ready to shoulder the burden and take the helm alone, so an interim solution needs to be found. Selling the whole company is generally not an ideal solution, because you will probably only recoup a proportion of what you have built up over the years as an entrepreneur.

Thanks to its many years of experience, capiton is well versed in the circumstances of these kinds of succession arrangements, so we can work with you to find a solution that benefits all parties.

Sell stake

In this transitional phase you sell a minority or majority stake in your company to capiton. Your continued involvement in the company is preferable, so for a period that you determine, you will remain at the helm and gradually transfer control of the company to your successor. During this process, capiton is on hand to provide support with strengthening your internal structures or to finance and implement an MBO or MBI.

Benefit

Often, it’s not just your heart and soul that you have put into the company, but also most of your assets. With capiton’s support you can diversify and restructure your assets, for example through an ‚Owner Buy-out‘. Learn more about this option by looking at the example of our former investment in Poli-Tape.

Common future

Together with capiton, you will also be investing in your company’s future. As a financially sound partner, we enable you to finance strategic acquisitions or undertake growth initiatives that give you the opportunity to increase the value of your company. You will also benefit from our industry expertise, as well as our advice and support, during the entire investment term. As a co-shareholder with an advisory board function, we support and advise you without getting involved in your day-to-day operations.

Find buyers

At the end of the joint investment phase, capiton will help you find a buyer for your company and successfully arrange your exit and ours. The increase in your company’s value during the investment phase means that you benefit twice from the sale of your shares.

This means that you have transformed your life’s work into an even stronger company, and are rewarded accordingly.

For examples of this kind of process read about our former investments in Trioptics or RTS.

capiton understands my business and the specifics of it. The capiton team is the ideal partner to work alongside.
Eugen Dumitrescu, CEO and Founder Trioptics

Find out more about our former participation in Trioptics.

Basic philosophy

One of capiton’s key principles is to consistently pursue the same goals as our portfolio companies and their owners. For us, it’s not about making fast profits at any price, but about the long-term health and value appreciation prospects of your company and its workforce.

Growth

At capiton we aim for solid growth that fully leverages a company’s potential. This is why we generally set aside additional capital for our portfolio companies to enable them to consistently finance and implement their growth strategies. Excessive levels of debt are also not part of our philosophy.

Support

During the dynamic value appreciation phase, capiton provides active support and expertise, without getting involved in the operational side of your business. You will benefit from our experience of handling similar cases.

Prospects

When you finally hand over your company it will be more valuable than ever, well equipped for the future, and will offer a secure workplace for your employees. It will be a company that you, your workforce, and indeed we can be proud of. This will be your legacy.

Your contact

Christoph Karbenk
Partner
+49 30 315 945 12
karbenk@capiton.de

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