Alternative Private Equity

Beyond middle market

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About us

At Wolf Capital Partners we believe in the broadest segment of the Spanish businesses: solid and stable companies whose EBITDA is often lower than € 3M.

We are born with the vocation of positioning ourselves as the benchmark firm of the transformation of value of small companies in Iberia.

There is a large market where traditional Private Equities cannot reach: SMEs with stable EBITDAs; own or loyal sales channels and unbeatable in their segment.

This is where we stand: SMEs with the capacity to evolve and multiply value.

Our Vision

Spain and Portugal markets

FRAGMENTED

SME companies universe is very fragmented

The majority of Spanish companies are SMEs (82.4%) representing companies with less than 10 employees that invoice on average 500,000 Euros / year. It is the lowest figure of the great European countries.

The concept of middle market company in the rest of Europe is much bigger (sales> 50 MM Euros).

FAMILY BUSINESSES

Most SMEs are family businesses

Behind Brazil, Spain is the country with more family businesses with nore than 85% of the market, although there are countries with a long tradition of family business such as Germany, France, among others. In many cases the family business has the objective of securing the future for subsequent generations rather than growth in itself, so transactions are not very evident.

GROWTH ISSUES

‘Step’ effect on the size of companies

The step of professionalization as a leap to becoming a great company is very relevant in many cases.

There are aspects of increasing complexity such as financial, risk, regulatory, legal, fiscal, access to local or international markets, products or strategic alliances.

Target Market

Companies with stability, consolidated in the market, normally with a problem of succession or willingness to make cash by the founders or the second generation. In other cases, companies with limited growth by product.

Our Target

Companies with stability, consolidated in the market, normally with a problem of succession or willingness to make cash by the founders or the second generation.

There is an opportunity to give depth to the middle market originating, through the consolidation, aggregation or integration of companies of related, complementary or value-integrating sectors in the low-market segment 2-3M € EBITDA.

Our goal is to implement an initial consolidation, without depleting the generation of value at this stage, and agile that also maintains a high level of synergies for a potential buyer.

At Wolf Capital Partners we create products for other traditional Private Equity investors and, therefore, consolidation aims to improve structure, channels, reporting, clarity of a vendor information, transparency in the calculation of adjusted EBITDA, etc …

A specific strategy for building value by using a well-positioned anchor company

to make strategic add-ons

Sectors
  • Food & Beverage
  • Industrial
  • Health
  • Education
  • B2B Services
Finances
  • EBITDA < 3M€
  • Low debt ratio
  • Stable Track record
Network
  • Good reputation company
  • Well connected shareholders
Structure
  • Simple and clean Organisation
  • Management ready to be professionalised
Founders
  • Engaged.
  • They want to stay and see the business grow at least for 2-4 more years.
Synergies
  • Business units that can generate value creation when integrated
  • Complementary distribution channels

Our Investment Strategy

We identify business projects with potential for value creation and development, according to an agile growth plan, through three axes:

Consolidation

Growth with companies in the same sector and the same product category.

Integration

Growth with companies that add steps in the value chain, with vertical integration.

Aggregation

Growth with companies that operate within the same sector, but with products in different categories.

1+1=3

We scale small businesses up to the middle market

“Buy and multiply” strategy, Acquisition of companies with a size between € 2m – € 3m of EBITDA, that serve as an “Anchor” of inorganic growth, with the purpose of achieving a larger scale that enhances their operations through the purchase and subsequent consolidation, aggregation or integration of one or two related companies.

Buy

Anchor Company

  • Company with shareholders and management team who are committed in the long term, at least 2-4 years.
  • EBITDA € 2M – € 4M (no distress).
  • Acquisition of a control majorit (50%-60%).
  • Solid business model.
  • Iberia.
  • All sectors, except financial, real estate and unethical.
Sum

Multiplying Company

  • Company/ies (maximum 2) with shareholders in clear retreat.
  • EBITDA €2M – €3M  (no distress).
  • Acquisition of 100% of the company.
  • With potential for improvement and growth acceleration./li>
Multiply

Execution of immediate synergies

  • Consolidation, integration or aggregation without exhausting the optimization of the value of the resulting company.
  • Target: resulting EBITDA >€5M.
  • Strategic positioning in the middle market.

Our Value proposition

Origination

We generate a unique transaction in the market with the best M&A professionals. We have access to the best investment opportunities, while our value proposition makes us close to shareholders and not competitors.

Diagnose

We follow a process of analysis, selection and evaluation. We carry out a comprehensive Commercial Due Diligence that includes, among others, product / service analysis, competitors and sales channels, as well as inorganic growth capabilities.

Hands-on execution

We form the best execution team with renowned experts and experienced professionals in the market for their long professional career executing from and for companies the value arbitration processes that constitute our Private Equity model.

Montoring and Control

We structure the investment under a clear, simple and highly controlled organization; subject to strict rules of control and well-defined governance that allow to monitor and protect the interests of the investor.

Compliance & Transparency

We implement CSR plans, apply synergies and establish a dashboard adjusted to value optimization, use of complementarities and improvement of the cost structure. We establish the KPIs to be reported by the company’s management team.

Arbitrage of Value

With the proper application of all these processes, we position the new company with all the operational, commercial and economic advantages to generate a transaction at a higher multiple.

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