M&A FAQ – Frequently asked questions

The following section contains answers to questions that we have frequently been asked since we began business operations in 1995. Do you need more information? Then please do not hesitate to contact us.

1. Despite selling the company, can I remain associated with it as part of a company succession?

Absolutely. If you are a managing partner leaving the company but are interested in continuing to accompany its progress, for example as chair of an advisory board, we will be very open to that possibility. For our part, it is possible for partners and/or the management to hold a minority stake even after we have purchased the company.

2. How long do you keep the company in your ownership?

Indefinitely. We have been working since 1995 on expanding our group of companies, are delighted with what we have achieved and are looking to drive growth through new companies.

3. How important are the company’s regional roots for MBB?

MBB has great respect for the foundations of SME entrepreneurship. These include above all the history of the company, its roots in the region and the involvement of families, who in some cases have worked for the company as partners or employees for generations. We see a value in these foundations that we respect and cultivate.

4. Does MBB also invest initially as minority shareholder with a view to taking a majority stake?

We exert our influence on the operational business strategy by defining with the management the strategic guidelines for the company’s policy, monitoring the progress and the success and supporting and challenging the company at the right time and place. If a complete management team is not in place, MBB will decide on suitable additions.

5. Why should I sell to MBB?

MBB has invested in medium-sized companies with great success since 1995. In addition to an attractive purchase price, we offer a high level of experience, professionalism, financial power and stability. Our work and our references are of great importance for the economic success of MBB. We would never put these values at risk in favour of short-term financial success. MBB has a wealth of experience in dealing with sellers’ confidential and sensitive interests. This can involve the reputation of family business owners or the interests in large corporations, for example. Our references are testament to our approach that is marked by trust and protects your interests.

6. What does MBB offer my company?

In addition to capital, the companies we invest in gain access to excellent management experience, a committed and highly qualified team and an extensive international network. Our investees thus enjoy for example direct access to one of the most globally attractive overseas markets through Aumann Technologies (China) Ltd., even if they could not maintain a location of this kind on their own because of their size.
With MBB, your company gets an experienced, economically powerful new partner that is focused on the long term. Your management gets a challenging, but fair sparring partner that is prepared to share its successes. Your employees get a partner that fights for the success of the company and cultivates open communication.

7. What happens with the company after the takeover?

To start with, MBB invests its efforts in learning everything about the company. To this end, intensive discussions are held with the management and the employees, and products, processes, customers, suppliers and locations are analysed in detail. In the next phase, the mentor from MBB becomes the sparring partner for the management. Together with the management, financial results are analysed, a strategic agenda defined and pursued and special projects launched. The aim of our work here is always to sustainably increase the value of the respective portfolio company.

8. Is MBB also interested in companies bound by collective bargaining agreements or that have a works council?

A collective bargaining agreement or a works council are of course not arguments against MBB taking over a company. If you would like to involve your employees’ representatives in the sale process, we will be happy to provide references from a number of dialogue partners who have worked on the employee representation side with MBB.

9. Is MBB a contact partner when the financial situation of the company already looks extremely ominous?

MBB’s interest is not limited to the particular financial health of a company. What is important for us is that the company has the potential for sustainable value growth. With the declaration of consent of the owner and/or the managing director, MBB will conduct an initial review of the financial and strategic situation in order to derive the next steps to be taken.

10. Is the management retained after the purchase by MBB?

A successful and experienced company management team is a key assessment criterion for MBB and has a positive impact on our interest in a purchase. We are therefore very happy to work together with the management that is in place and will supplement it only in areas where we anticipate clear benefits for the company. Ideally, we develop young executives from within the company rather than resorting to external appointments.

11. Can the management take part in the purchase by MBB?

An equity interest held by the previous management and/or the previous owners has in the past proved to add great value even after an acquisition by MBB. We are therefore very open to this question, with the result that the great majority of our management teams directly or indirectly hold an equity interest stake in their respective companies today.

12. How long does the process of a purchase by MBB take?

MBB is able to conclude an efficient and responsible company acquisition process in the shortest time. In our experience, a period of at least four weeks but no more than four months will be needed from initial contact to the conclusion of a contract of sale. We do not work with a large number of consultancy companies in this phase, but instead use the many years of experience of our team members in the audit.

13. Would MBB also invest in an entrepreneurial idea?

No. MBB specialises in majority shareholdings in established medium-sized companies.

14. My company is also involved in trade and services. Would that be of interest for MBB?

MBB’s interest is not limited to specific sectors. For that reason, companies in the trade and services sector are also of interest and already form part of our portfolio today. In principle, we recommend that you get in contact with us and clarify whether MBB would be interested in your company. We will always respond to your enquiry quickly and confidentially.

15. Will the company name be retained?

Unless otherwise desired by the seller, we will continue to use the company name and maintain the independence of the company.

16. Does MBB demand guarantees from the seller during the sale?

MBB demands the usual guarantees within the framework of the purchase contract. We additionally point out that we see a connection between the purchase price and the scope of the guarantees.

17. Will departments be outsourced to the MBB headquarters and closed at the company’s location?

No. MBB provides only a very limited scope of services from its headquarters. One of the focuses of our work is in principle to maintain the independence of the companies we invest in.

18. Would MBB pay a commission for the brokering of a company purchase?

Standard market commission can be agreed in specific cases. We do not issue exclusive mandates to search for target companies. Any claim for commission must be agreed in writing with MBB in advance.