Solutions
Industrially driven solutions across the investment cycle
Industrially driven solutions across the investment cycle
Investindustrial has a successful history of generating business solutions that create value by deploying knowledge, people, and capital in mid-market companies with improvement potential.
Pre investment
Unique and extensive due diligence is undertaken over three stages in conjunction with our Industrial Partners, and at times external consultants, resulting in the preparation of a three-year management plan which reflects Investindustrial’s view of the company’s prospects and strategy.
To facilitate investment in a way that supports the flexibility required by our portfolio companies, Investindustrial has a rich history of developing innovative financing solutions. This is evidenced in a range of financial instruments through which we make our investments and also in the raising of separate investment vehicles that support specific portfolio company needs.
Investment period
Investindustrial actively works with management teams across the investment period to support the execution of value creation strategies in a way that captures the globalization trends across the sectors in which we make long-term investments. This involves constant monitoring in addition to the development and implementation of value accretive solutions such as:
- operational improvement by leveraging hands-on, industrial know-how
- creation of industrial partnerships across the value chain with world class operators
- M&A activity with significant synergies or strategic value
- creation of brand partnerships to further differentiate portfolio companies
- globalization through penetration of existing, new or adjacent markets
- expansion or rationalization of the product base and marketing mix
- relocation of manufacturing to developing regions to rationalize the cost base
- negotiation of recurring contracts or concessions to provide high visibility on earnings
- upgrade, installation and implementation of IT infrastructure creating significant operational value
- seeking increased returns to scale through open dialogue with suppliers around business forecasts
- outsourcing to trusted or high quality providers
Managing the exit
Whilst to date Investindustrial has pursued exits with preferred industrial trade buyers for over 50% of its investments, the firm has a range of solutions that have been successfully executed in the past, that serve as alternative exit routes in the event preferred trade buyers fall out of contention.
Investindustrial has created financial and operational partnerships with other leading investment firms in recent years through co-investment initiatives. Our partners are drawn to Investindustrial due to our leading position in our target markets and the high quality, proprietary opportunities that often only Investindustrial can access. These partnerships revolve around high quality assets on which Investindustrial is typically the lead investor, and given their historic success have created a valuable channel through which to realize value. Exit to a wider range of financial sponsors will be considered, driven by the appropriateness for the underlying business.
Investindustrial also has a successful history of divesting its portfolio companies in a public markets context. Innovatively, Investindustrial continues to review the public market for take-private investment opportunities, which creates a valuable link to, and a virtuous circle with, the public markets with respect to exit opportunities for existing portfolio companies.
