Private equity consulting

CODEX Partners offers comprehensive consulting services for the private equity sector. We advise investors, business owners and managing directors on essential entrepreneurial tasks and decisions. Leading national and international private equity investors rely on our expertise.

Your advantages with CODEX Partners

Our services include commercial due diligence for buy side and for sell side, development and implementation of growth strategies (organic growth and "buy & build strategies"), as well as the operational improvement of portfolio companies (e.g., full-potential programmes, sales, and marketing, etc.). Our objective is to increase the value of the portfolio companies and to support management in achieving their objectives. In doing so, we rely on many years of extensive experience.

Since our founding, we have completed more than 600 projects in industry, IT, health care, consumer goods and services which makes us one of the leading strategy consultancies for private equity and medium-sized companies in the DACH region.

Private equity consulting services from CODEX Partners

As a full-service consultancy, we support you throughout the entire investment cycle. We provide services in:

Commercial Due Diligence
Buy & Build strategies (platform building)
Growth strategies for portfolio companies
Implementation of operational improvements
ESG strategies

Private equity has become a mature industry. The number of investment companies and the capital of private equity funds has risen sharply over the past 20 years. In addition to private equity funds, family offices, private investors and international investment companies are also entering the German-speaking market.
‘Good’ acquisition targets are still rare. They are increasingly being marketed professionally, even in the small and mid-market segment. Purchase prices have risen sharply. Competition for these acquisition targets has increased. Investors must familiarise themselves with new investment projects at a very early stage and invest time and money in them.

In view of the high purchase prices, approaches that rely as much as possible only on debt and tax optimisation are not enough. They need to be supplemented by convincing growth and acquisition strategies (e.g., buy and build) so that the invested capital generates sufficient return in the end. This is one of the reasons why operational partners, investment managers and external consultants are increasingly used in the ongoing support of portfolio companies with the aim of increasing the value of the portfolio companies and being available to the management of the portfolio companies as advisers.

CODEX Partners offers comprehensive consulting services for investors: searching for new opportunities (‘platform building’) for new investments for investors, undertaking commercial and operational due diligence, implementing growth strategies for portfolio companies as well as operational improvement measures. In total, CODEX Partners draws on experience from more than 600 projects.

Current political and economic changes pose new challenges

Current changes in the political and economic environment (the new "Cold War", the supply chain crisis, COVID 19, inflation, etc.) require new strategies for supply chain management, digitisation, recruiting and skill building.

Apart from these challenges, companies and investors also need to effectively contribute to climate change mitigation and human benefit enhancement by considering ESG factors.

We see ESG not only as a necessity, but also as an opportunity to increase corporate value.

CODEX Partners offers our clients comprehensive consulting services to address the new challenges and provides references upon request.

Your contact persons for Private Equity

Clemens Beickler

clemens.beickler@codex-partners.com

Dr. Rüdiger Maaß

ruediger.maass@codex-partners.com

Network

An important success factor of our work is the involvement of experts in our teams. CODEX Partners leverages a large network of industry and technology experts that we have built up since our foundation.

References

Since its foundation, CODEX Partners has carried out over 400 projects together with our clients. With our expertise as a leading transaction adviser in the German-speaking region, we assist both national and international private equity investors.

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June 2024

Dataciders has reached an agreement to acquire PRODATO

CODEX Partners provided the Commercial Due Diligence of PRODATO
June 2024

Elvaston Capital Management successfully completed the refinancing of its investment in proLogistik Group

CODEX Partners provided the Commercial Vendor Due Diligence of proLogistik Group
June 2024

Gimv has reached an agreement to acquire SMG Sportplatzmaschinenbau

CODEX Partners provided the Commercial Due Diligence of SMG
May 2024

Garda Sikring, a portfolio company of EMK Capital, has successfully partnered with Freihoff Group

CODEX Partners provided the Commercial Due Diligence of Freihoff Group
January 2024

Virthos Partners successfully completed the refinancing of its investment in FireDos GmbH

CODEX Partners prepared the Commercial Factbook for FireDos GmbH
January 2024

AddSecure Group, a portfolio company of funds managed by Castik Capital, has reached an agreement to acquire DigiComm Group

CODEX Partners provided the Commercial Due Diligence of DigiComm to AddSecure Group and its shareholders

Frequently asked questions about Private Equity Consulting

What are the opportunities and risks of private equity investments?

Private equity investments are attractive due to their high return potential. Private equity funds always invest in several companies, which spreads the risk. Compared to investments in shares of companies listed on the stock exchange, a private equity fund, as the main shareholder of a privately held company, has considerably more influence on its performance. As a result, significantly higher returns can be earned than in the stock market.

However, investments in private equity funds are also associated with risks that must be carefully weighed. Private equity is risk capital, as the risk of investing in typically medium-sized companies tends to be higher than investing in large, listed companies. Private equity funds are usually closed-end funds with a term of between 7 and 10 years.

What are the main purchase criteria of a private equity fund for an investment/acquisition?

Private equity funds pursue a specific investment strategy, e.g., investments in companies in certain industries, regions or in companies in so-called special situations (e.g., restructuring cases). In general, private equity companies are looking for sustainable business models that show stable growth in the long term. The value development of a company can also be increased through company acquisitions (so- called add-on acquisitions).

What is a private equity fund and who are the investors behind it?

Private equity funds are asset collection vehicles managed by private equity firms. They collect capital and invest it in stakes in companies held by private owners (as opposed to stakes in listed companies). The aim is to successfully develop the companies in which private equity funds invest, together with the management, so that they can later be sold back to new shareholders at a profit.

Usually, various institutional investors, banks, family offices, private investors, pension funds and insurance companies invest in private equity funds. The fund manager (general manager) usually also invests in the private equity fund. The fund manager receives an annual management fee. In addition, the fund manager participates in the increase in value of the companies in which the fund has invested.

What strategies do private equity companies pursue?

Private equity funds specifically seek to invest in privately held companies whose value can be promisingly increased and support the management of these companies in their value development by developing a joint growth strategy and investing in growth measures.

There are different types of private equity companies. In general, they are divided into the following 3 private equity types:

Venture Capital
The provision of equity capital to young companies. This is used to establish or expand business operations. Since companies are often very small after their foundation, do not yet make a profit and their development on the market is uncertain, venture capital investments are a particularly risky investment strategy. The advantage here is that investors can receive very high returns if the company is successful.
Buy-Out
In contrast to venture capital, investors participate in companies that are already established in the market. Since the target company is no longer in the start-up phase, the risk is lower compared to venture capital investments. In buy-outs, both equity and debt are usually used to finance the investment.
Turnaround
In the turnaround strategy, companies in crisis are taken over by private equity companies and restructured (cost reduction, sale/closure of unprofitable parts of the company, sales increase, etc.). The return on investment depends on the success of the restructuring of the company.

What impact does private equity have on business?

Private equity is the partner of entrepreneurs and ensures that entrepreneurs have an attractive alternative when they retire from the role of shareholder and that managing directors have the opportunity to step into the role of co-partner and co- entrepreneur. Moreover, private equity helps existing companies to modernise and stimulates their growth. Through its long-term investment strategy, private equity supports the development of sustainable businesses, creates sustainable jobs and contributes to economic development.

What are the advantages of a private equity fund investment for my company and for me as an owner?

In addition to the provision of capital, company owners benefit from a large pool of experience of private equity investors. Advantages include extensive know-how and many years of experience in the field of company development, as well as access to already existing networks and distribution channels.

As an owner, do I have to step out of the management of the company?

No. Owners do not have to leave the management of the company in the case of private equity investments. On the contrary, private equity investors usually like to see the owners to remain in the company. Often, transition periods are also planned for an exit from management.

Entrepreneurs are of great interest to private equity investors because they have industry know-how and valuable networks and know their company from the "inside".

Frequently asked questions about Commercial Vendor Due Diligence

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