Growth financing by means of a minority investment
The employees of H.C.F. advise an analytics service provider on growth financing by an investor providing growth capital in the amount of EUR 5 million. The company’s clients are from the following sectors: agriculture, environmental advisory as well as food and moleculobiological diagnostics. In the future, acquisitions are supposed to lead to a stronger position in the market and further internationalization. The current shareholders wish to give up as little company shares as possible. In the long run, the goal is to keep 100% of the company shares in family hands.
This plan was realized through a minority investment by an investor of which ¾ were agreed to be bought back two years later by the company. The financing partner promotes the growth of the company and helps to purchase a food analytics laboratory of the same size in Germany as well as to expand the activities of the company abroad. When the remaining shares were bought back from the investor ten years later, the company generated a five times higher revenue, multiple acquisitions have been accomplished, a successful modernization of the laboratories took place and an expansion to multiple European countries and organic growth in Germany was made possible. Today, 100% of the company is owned by the family.