Buy-out

Allow yourself and your company the freedom to grow.

Making the step from employee to shareholder in a management buy-out is often a once-in-a-lifetime opportunity. Finally allowing you to unlock the value of the business and the entrepreneurial spirit that was held back by corporate citizenship.

This freedom comes with responsibility and the ultimate success will also depend on your choice of equity partner. Will you opt for a purely financial sponsor or a team that has your back during the investment period and provides support as well as equity?

An equity partner who supports you. Every step of the way.

We fully understand the pressure buy-out teams are under. For you don’t want to throw away this unique opportunity. Having backed numerous management teams during buy-outs, we know where to make a difference. That’s why we don’t just provide equity, but also help to iron out any (operational) challenges during the transaction and subsequent carve-out.

However, our support doesn’t stop after we’ve set your company free. We will continue to engage and act as sparring partners to make the transition smoother. That is one of the reasons why, over the course of many transactions, our team has become a trusted counterpart of executives and founders/owners. Acting swiftly and confidentially to arrange complex buy-outs and turn ‘corporate orphans’ into flourishing stand-alone businesses.

“We saw a great opportunity to turn a non-core asset into a new integrated company. Fortunately for us, the investment team had a lot of background in our business and understood the potential of our plans.”

Matthias Oppermann, Operations Director at JET Group

Case: From one for one to all for one.

The perspective of Matthias Oppermann, Logistics Director at JET Group rooflights and fire safety.

Under previous ownership we were a collection of independently operating rooflight companies. Not allowed to join forces and therefore without any real growth perspective. So when our previous owners decided to focus on their core activities, we saw a great opportunity to build an integrated stand-alone rooflight company.

Fortunately for us, we came across a private equity partner who saw it the same way. A team of professionals that already had a lot of background in our business and understood the potential of our plans. This made it easier to match our perspectives and get what was needed from the previous owners. Leading to a constructive buy-out and the start of a new chapter in our history.

Even before the ink had dried on the contract, we jointly developed an integration plan. Analyzing our footprint, our assets and our workflows, to end up with a new and effective structure. Once we had integrated our German, Dutch and English divisions and brought them under one management, it was time to think about expansion. And thanks to the analytical qualities, the knowledge and the decisiveness of our equity partner, we moved into adjacent markets and grew into a leading Pan-European rooflight company.

Continue to Spin-out

Spin-out

Disentangle your business without any loose ends.

Sometimes a business gets stuck within a corporate organization. Especially if it is deemed a non-core activity. The solution can be to disentangle it from the parent company and opt for a spin-out. A process in which a reliable and experienced buyer can make all the difference, because operational and financial credibility are key for success.

We help nurture a spin-out to a full-grown company.

At Torqx we know what is needed to successfully detach businesses from their parent companies. Taking great care to generate a positive outcome for all parties involved.

From dealing with the outgoing shareholders’ separation concerns, to creating the best possible result for employees. Acting swiftly and confidentially upholding our reputation as a trusted counterpart in spin-out transactions.

“Together we disentangled all flower breeding assets from our parent company, turned them into a new dedicated business, and started investing heavily in R&D. This allowed us to introduce new breeding technologies and make a disruptive change in the industry.”

Harry Kloppenburg, CCO at Dümmen Orange

From non-core asset to market leader.

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

While we were still in hands of our former shareholder, we came up with an idea that could revolutionize the flower and plant breeding business. But it was bound to go nowhere, as our owner’s core activities were focused on all but floriculture. So much so in fact, that our former shareholder agreed that it would better for both parts of the business to go their separate ways.

Together with the investment team, we developed a separation plan that provided comfort to the parent company. Next, we disentangled all their flower breeding assets and structured them into a new dedicated business under one management team.

This gave us the freedom to introduce new vegetable and fruit breeding technologies in floriculture and make a disruptive change in a historically traditional business. Turning us into the global market leader, operating in 16 countries and with an annual production of 1,5 billion yearlings (‘stekjes’).

Continue to Succession

Succession

Building on your legacy.

Successful businesses often have a history which dates back decades. Full of fascinating stories about founders starting a company and generations of sons and daughters helping it to grow. However, there’s always a chance that the line of ownership cannot be continued. Leaving the heirs with the problem to arrange their own succession.

Such transitions can prove to be risky and most equity sponsors will hesitate to invest. For it is no small feat, to replace someone who’s so intertwined with the business and able to perform multiple roles.

The right people for your job.

At Torqx we have the right experience to take on the challenges involved in arranging your succession. Using our business background to help you select likely candidates and find suitable new management accommodate this.

Supporting the transition, always taking care to capture the invaluable knowledge and skills of the selling shareholder to help the new management to continue building the legacy of the business. In many cases the selling (family) shareholders are interested to keep an equity stake in the company, something we are happy to support.

“Leaving our life’s work to a private equity company was not what I had in mind. But the investment team came up with a solid plan to arrange my succession and continue to expand Gerritse IJzerwaren.”

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

Case: A fitting testament to my family.

The perspective of Kees Gerritse, former owner of Gerritse IJzerwaren (an ironmongery and tools company, now named Isero).

It didn’t really come as a surprise that there wouldn’t be an heir to take over the business. After my brother left in 2008 it was just me and I had planned to leave the company when I turned 55. This gave me some time to prepare for the transition and to allow our clients and our staff to get used to the idea. But leaving our life’s work to a private equity company was definitely not what I had in mind. For one, I saw them as outsiders. Mainly focused on costs and profits and not very interested in what our family had built. Additionally, I found it hard to believe that they would take the effort to really comprehend our business. But nevertheless, I decided to sit down with the investment team and listen to what they had to say.

Instead of some mumbo jumbo pitch story, they came up with a solid analysis of our market and a clear strategy to continue and expand Gerritse IJzerwaren. This gave me the confidence to leave the company in their hands and after just three months we made the final deal. A choice I’m still happy with today, as Isero’s subsequent growth is a fitting testament to the achievements of my family.