Acquisitions

Found an opportunity to grow? We can help you seize it.

There are many reasons to seek expansion outside your company. Such as achieving economies of scale, increasing your market share or gaining a foothold in a foreign market. But no matter the reason, making acquisitions can be as nail-biting as it is exciting. For the future development of your business can depend heavily on finding the right targets and the ability to integrate them into your organization.

As this is so important, it pays to choose an investment company who supports you from the first analyses to the final integration. Allowing you to seize the opportunities that will truly benefit your business.

A spreadsheet only tells part of the story.

On paper an acquisition target may look very promising. However, the figures only tell part of the story. Therefore we make it our business to understand your business. Gauging the specific pros and cons of making an acquisition. Identifying the most promising assets, in terms of business models, cultural fit, people and processes.

Once we have made the joint decision to invest, the Torqx team supports you throughout the whole acquisition process. And helps you with the full integration of the acquired business into your organization. To prevent the pitfall of letting an acquisition increase the complexity in your business. Allowing the combination to truly operate as one company.

“Their understanding of our business, their transaction experience and their network turned out to be of great value in identifying the right acquisition targets.”

Harry Kloppenburg, CCO at Dümmen Orange

Case: Acquiring more variety.

The perspective of Biense Visser, Harry Kloppenburg and Roger Gerritzen, CEO, CCO and Head of M&A at Dümmen Orange.

Once we significantly invested in R&D and improved the quality and yield of our seeds and yearlings (‘stekjes’), it was time to better utilize our investments. Therefore we looked at the options to apply our new breeding technology to more flower and plant varieties.

Rather than start each of these from scratch, we decided to expand our company by acquiring the right floriculture businesses. And together with the investment team, we identified the assets that offered the best and most complementary product ranges.

During this process their understanding of our business, their transaction experience and their network turned out to be of great value. As did their sense of timing and the speed at which they make decisions. Traits which definitely contributed to the successful growth of Dümmen Orange. Empowering us to become the global market leader in floriculture.

“We accelerated our growth and became one of the leading rooflight companies in Europe. A result we couldn’t have accomplished without the support of the investment team.”

Matthias Oppermann, Operations Director at JET Group
Continue to Buy-and-build

Buy-and-build

Seizing the opportunity to become a market leader.

There are many reasons why a buy-and-build strategy can be attractive. Such as an increase in scale, a broader product portfolio or gaining access to new markets. In any case, buy-and-builds are highly complex. Requiring a lot of effort to execute transactions and seamlessly integrate new assets into an existing organization.

At Torqx we know how to successfully realize buy-and-build programs. Providing the funds as well as the expert resources to support you. Helping you to stay focused and drive your business. Jointly seizing the opportunity to become a market leader.

We help you to outperform competition. Not just in scale.

Because we have been involved in many successful buy-and-build cases, we know the importance of a strong partnership between management and investors. Therefore we give considerable attention to the development of a joint buy-a-build strategy. And ready the platform for a step up in scale by strengthening its organization and systems.

In parallel helping you to identify the most attractive assets available with the use of our own detailed analysis and comprehensive market review. Always keeping a close eye on preventing common pitfalls such as incompatible business models, cultures and systems. Once a positive decision is made on an add-on investment, we help to realize the acquisition, from negotiation to integration. For it is our aim to have the acquired companies truly operating as one, to become the market leader in proposition as well as in size.

“They clearly understood that in our business you need a strong local presence. So they came up with a strategy to acquire other similar companies to cover more regions and expand our local network.”

Kees Gerritse, former owner of Isero (f.k.a. Gerritse IJzerwaren)

Case: Just two years to double in size.

The perspective of Kees Gerritse and Bert Bunschoten, former owner and present CEO of Isero (f.k.a. Gerritse IJzerwaren).

The market in which our ironmongery and tools company operates, used to be much more fragmented. Served by several family owned wholesalers, each with their own network of smaller, regional distributors. This is hardly surprising, considering the importance of having a local presence in our business. Because builders and contractors need to be close to their supplies.

However, we saw a clear rationale for increasing our scale. Particularly because of the benefits of centralizing our warehousing, product procurement and commercial support functions. This meant that a buy-and-build strategy was the best option for further growth. Acquiring other similar companies to cover more regions and expand our local network.

When the investment team presented this strategy, it was clear that they understood our business and saw the potential. So Kees felt confident that they were the right people to take over the company, as there wasn’t a successor within his family. Once the transaction was completed, they assisted in finding an experienced management team and we got to work. Strengthening the platform by introducing a new ERP-system and an optimized pricing strategy. Enabling the full integration of five important add-ons to our company; Breur, v.d Winkel and three smaller competitors. This allowed us to double in size in just two years and claim the market leadership position. Something we wouldn’t have pulled off without the support of the investment team.

Continue to Expansion

Expansion

Fuel for a growing business.

Ever since its foundation, your company has grown autonomously. Reaching milestone after milestone and showing good results. But at this point, you are contemplating further strengthening and expansion of your organization. Asking yourself if your business can continue to grow on its own or if it requires external funding to keep pace with demand.

These types of investments can make or break a business. So they need to be made carefully, to ensure your expansion plans will actually create more value. On the other hand, you don’t want to lose momentum. Which means that your equity partner should have the analytical skills to grasp your plans as well as the decisiveness to sprint along with you.

“Thanks to their support we could double our size in two years, covering the most attractive regions and building the largest network of ironmongery and tools suppliers in the Netherlands.”

Kees Gerritse, former owner of Isero (f.k.a. Gerritse IJzerwaren)

Finding the right match. In every sense of the word.

Through the years, the Torqx team has been involved in numerous growth investments. Supporting companies to move into new markets, open new branches or invest in production assets.

During these expansions we’ve always worked side-by-side with the management teams, to quickly understand the intricacies of their business and build on their competitive edge. This analytical but pragmatic approach allows us to make quick and transparent investment decisions.

Case: Local presence on a national scale.

The perspective of Kees Gerritse and Bert Bunschoten, former owner and present CEO of Isero (f.k.a. Gerritse IJzerwaren).

The end-users of our products are mainly builders and contractors. Guys who can’t afford to travel long distances to get the right nuts, bolts, hinges and tools. If they need something, they need it quick and should be able to get it within a short time frame. Otherwise we run the risk of losing their business.

Therefore, local presence is key. That is why we worked together with the investment team on an all-encompassing growth scenario. Including the acquisition of similar businesses with a strong local network as well as the greenfield expansion of our company with five new locations.

Thanks to their support we were able to double our size in two years. Covering most of the attractive regions in the Netherlands and building the largest network of ironmongery and tools wholesalers in the country. On top of that, they helped us to adjust to our bigger size by supporting further improvements in our organization. Funding and backing the optimization of our logistics and pricing along with the centralization of our warehousing and support functions.

This led to a new Isero Ironmongery group, that was able to claim the market leadership position within an incredibly short period of time.