Our succession approach
Major market changes due to increasing digitization worldwide have not left German SMEs untouched in recent years. Increased competitive pressure from the Far East, but also increasingly global intermeshing of national economies due to globalization, make the economic environment more difficult for SMEs and have often left behind a backlog in digitalization. The search for an adequate successor is also becoming increasingly difficult, especially in rural regions.
3CC Partners addresses precisely this challenge. We solve corporate successions of medium-sized companies through active management as local operative managing directors, financially through participation and digitally through extensive experience in implementing digitization strategies and digital transformation. In doing so, we actively set the necessary accents in the management to optimally solve the challenges of the company’s future and to continue the company successfully in the long term.
Our focus is on companies with a turnover of less than €20m and an EBIT of approx. €1m. As a rule, we aim for 100% equity stake, but at least the majority participation in market-leading companies. Our concept always envisages a majority takeover, a future-oriented orientation and the long-term successful continuation of the company.
We are looking for the following companies:
Sector
Sector-independent, preference for asset-light companies and trading companies in fragmented markets
Shareholding
Not less than 75,1%
Products
Significant unique selling points, patents or strong brands
Region
German-speaking DACH region
Size
Up to 20 million revenue and between 0.5 - 3 million EBIT
Business model
Double-digit EBIT margin with preference for recurring revenues
Typical situations we are active in:
Retirement
Entrepreneurs want to retire after they have built a successful business and it is important to them that their business is actively developed at its current location by the next generation of trusted and reliable successors.
Illness & special situations
In special situations (e.g. illness) we can act very quick and relieve the entrepreneur within 2 weeks (after signing the LOI) at our own expense and risk, already during the parallel due diligence if this is necessary and desired - this distinguishes us clearly from other buyers.
Entrepreneur families or industrial spin-offs
Sometimes entrepreneurial families want a quick solution for business succession and want the family business to remain in good hands. In other situations, holding companies sell investments that require active owners or are no longer part of the core business.
Solutions that we offer:
Succession solutions
We solve the succession problem of entrepreneurs who wish to withdraw from their company. We work discreetly and strive for the best possible process for all parties involved, including the workforce.
Digital Transformation
The digitalisation of the company offers opportunities for the success of the company in which we let the former owner participate. As digitization experts, we bring with us broad expertise in digital transformation.
Owner participation
Our owner-return participation and re-investment is a great opportunity for the seller and gives the seller the opportunity to participate in the future success of the business, in exchange for further advice and consultancy from the previous owner.
Management Buy-In (MBI)
We make a management buy-in in which the company is taken over by external management – us – so that we are owner and managing director at the same time and we can ensure a long-term outlook & sustainability.
Our cooperative and fast process:
Letter of intent and operational relief within the shortest time possible
Corporate transactions require experience, know-how and a lot of care and at the same time the effort for the entrepreneur and the company must be kept to a minimum. 3CC Partners is known for a cooperative, respectful, fast and professional transaction process. We strive to be a reliable and transparent partner for both entrepreneurs and M&A advisors on the seller side to ensure a smooth transaction. We are usually very fast as we are independent decision makers and pragmatic entrepreneurs. We always keep the overview and make sure that a succession situation is as little burden as possible for the owner and the team.
Owner meeting
Letter of intent within 2 weeks
Due Dilligence
Notary appointment
Ongoing discussions with the owner and the consultants; building mutual trust and a cooperative environment.
At the request of the owner or according to his needs, we can start working from the company's office during the due diligence phase and thus relieve the owner immediately...
Our behavior after the purchase:
Management
Operating
Business
CompanyActive, opportunity-oriented management
- Pro-active development of potentials in the company and market environment
- Focus on results and outcomes, not corporate policy
- Flexibility, speed of action & willingness to perform
- Assumption of leadership responsibility
- Development of a “Buy-and-Build” strategy from the role of the industry insider
Goal: Complete transparency of operations and efficiency measures
Optimization and digitalization of manual processes
- Internationalization of purchasing and sales structures
- Introduction and optimization of controlling and monitoring tools and structures
- Detailed liquidity & cost management and reporting
- Focus on clear responsibilities of individual employees
- Concentration on core business & outsourcing
Goal: Increase profitability through operational transformation measures
Further development and repositioning of the company
- Optimization and realignment of sales structures
- Introduction and optimization of all online marketing activities
- Development of digital business potential
- Active brand development of the company (“branding”)
- Identification of value drivers and implementation of a growth strategy
- Internationalisation of the business model
- Scaling of the business model through a buy-and-build strategy
Goal: Long-term sustainability through strong brand and value proposition
Introduction of a collaborative performance culture
- Introduction of a transparent, performance-oriented corporate culture
- Implementation of adequate employee incentive & compensation systems
- Involvement of employees in the development of corporate strategy and transparency in management decisions
- Promotion of innovation capacity
- Implementation of a communication structure
- Definition of a corporate culture and a value proposition