Mutares: Reliable partner, entrepreneur and investor
Mutares is an international private equity investor focused on special situations.
Mutares focuses on the acquisition of parts of large corporations (carve-outs) and medium-sized companies in transitional situations. The aim is to leverage the development potential of the usually distressed target companies within the framework of an active turnaround process and to lead them onto a stable and profitable growth path. For this purpose, the Mutares team – from the management to the operational teams – has extensive operational industry and turnaround experience from a large number of successful transactions.
Mutares focuses on European companies with high operational development potential that already have an established business model often combined with a strong brand. The focus is on companies with revenues of EUR 100 million to EUR 500 million from the following segments:
Mutares is owner-managed, with ca. 37% of the shares held by the management and supervisory board that are therefore significantly involved in the value creation process.
Corporate Governance
Good Corporate Governance is deeply rooted in the corporate culture of Mutares. It has been an integral part of Mutares´ business practice for many years.
An active, open and transparent communication, a responsible risk management as well as an intensive and continuous dialog between Executive Board and Supervisory Board are a matter of course for us, as private equity master of special situations.
More Information
The Executive Board and the Supervisory Board of Mutares SE & Co. KGaA are committed to the principles of a modern Corporate Governance.
Our Approach
Mutares looks for companies in difficult situations in order to leverage existing value potential with innovative and individually tailored solutions.
Mutares is one of the top companies in Europe when it comes to carve-outs, restructurings and subsequent inorganic growth as part of a buy-and-build strategy.
Mutares typically acquires low-yield companies or parts of companies that are no longer part of a group’s core business and are therefore being carved out,
or where a sale makes sense in the course of corporate succession.
The overriding goal is to transform calculable risks into above-average value creation with a return on invested capital of 7 to 10.
As part of the typical value creation process, Mutares’ investments go through four development phases: from Acquisition through Realignment and Optimization to the step of Harvesting.
Acquisition
Mutares has specialized in identifying, analyzing and exploiting existing market opportunities when acquiring its portfolio companies. As part of the acquisition, the company focuses more on the existing value potential than on one specific sector. Accordingly, the Group’s operating companies are active in a wide variety of industries and pursue different business models.
It is characteristic of potential takeover targets that already in the transaction phase, earnings improvement potential in the company is clearly identifiable, which can be raised within one to two years through suitable strategic and operational optimizations.
Realignment
In the course of the Realignment Mutares develops the investments strategically and operationally:
Mutares consultants support the companies in investments or in the development of innovative new products, in sales and in the sustainable adjustment of production until the company has re-established itself as an independent, profitable company.
This is followed by further measures to push organic growth.
Optimization
In the Optimization phase, Mutares clearly differs from classical investors that provide only capital. Mutares acts as an active investor and develops permanent and flexible action plans for the investments.
In the course of an active investment management, Mutares continuously develops new business opportunities in the investments and supports their development.
This explicitly includes the regular review of add-on acquisitions in order to drive and achieve the ambitious growth targets through a focused buy&build approach.
Harvesting
Harvesting is the final step before the Exit.
The realization of the value potential of the individual investments is actively pursued after passing through all development phases in order to realize a profitable exit from the company.
In this case, the target is 7 to 10 times return on invested capital.
Maximum value for our shareholders
We aim to create maximum value for our shareholders through sustainably profitable investments.
Once we have acquired a company, we employ a forward-looking corporate strategy and management to raise its long-term value.
The management and employees of the companies we acquire play a central role in managing the change associated with operational optimization. The success of all our measures ultimately depends on the qualifications, commitment and team spirit of our employees. We are convinced that significant value enhancement can only be achieved through joint cooperation. We therefore see the participation of employees and management in the success of the company as a central element of our development strategy.
In addition, when developing individual strategies for each portfolio company, we rely on both proven entrepreneurial measures and creative and unconventional approaches. In each case, we are guided by five principles:
- Entrepreneurship
- Operational use
- Growth
- Sustainability
- Teamwork
Mutares focuses on organic growth and the sustainable success of its portfolio companies in all its decisions. This takes time. Therefore, we invest for the long term and give our companies the time they need to increase sales and profitability and to expand their market position. Our aspired holding period lays between approx. three to five years.