Frequently asked questions about M&A transactions

Due diligence (DD) is what we understand by "due care". This refers to the thorough risk assessment that a buyer carries out before acquiring a company. At GESCO, experienced employees carry out this assessment and, if necessary, call in external experts, for example for environmental or market analyses. Part of the DD always takes place directly in the company, so that we experience not only the figures but also the corporate culture first-hand. Every purchasing process is ultimately based on trust.

Definitely not. Private equity companies are temporary partners that focus on short-term growth phases and then exit again. We, on the other hand, buy companies in order to hold them for the long term. GESCO benefits from the profit distributions of its subsidiaries, not from quick exits. We also finance acquisitions ourselves, which means that we do not burden the subsidiaries with additional debt in economically challenging times.

GESCO lives from the profit distributions of its subsidiaries. Together with the company managements, we analyse the current situation and investment requirements in order to determine the amount of distributions. Companies with stable earnings that are not extremely fast-growing can also be attractive for us.

Our valuation centres on the company's ability to pay dividends. While key figures such as EBITDA and EBIT are less relevant, we look at the sustainable earnings after trade tax. We also consider factors such as market position and risks in order to determine a valuation factor. The economic equity ratio also plays a key role.

As a listed company, GESCO is characterised by a high degree of transparency. Our annual financial statements can be viewed online and we generally finance our acquisitions from existing cash and cash equivalents. We decide on a case-by-case basis whether to utilise additional debt capital. This approach enables us to submit purchase offers without a financing proviso and to offer maximum transaction security.

We will retain the identity, structure and corporate culture of the acquired companies. GESCO is not planning any mergers or consolidations. New subsidiaries are integrated into our reporting and controlling structures. Our investment managers visit the companies regularly, and a strategic meeting of all managers takes place at least once a year. If a company has no successor, the seller is generally available until a successor has been trained.

GESCO SE currently only holds companies headquartered in Germany, but is open to direct investments in other European countries. Our subsidiaries are internationalised to varying degrees and we look for acquisition opportunities worldwide. You can find more information on target sectors and sales figures in our acquisition criteria.

We generally acquire established and successful companies independently of each other. Synergies are not a decisive factor in our purchase decisions. However, if cooperation opportunities arise within the Group, we examine them, but the final decision lies with the respective managing directors.

Founded in 1989, our business model has remained virtually unchanged for over 35 years. Our oldest subsidiary has been with us since 1990 and demonstrates our commitment to long-term partnerships and investments.

GESCO is not a restructuring company and does not actively intervene in the operating business. In individual cases, we can imagine acquisitions in restructuring situations, but only if they make sense as a supplement for one of our subsidiaries.