Garz & Fricke GmbH

We advised Afinum on the sale of the Garz & Fricke GmbH. Within a very short time, the team realized a commercial vendor due diligence, a strong business plan and thus supported Afinum in achieving an outstanding result.

Afinum Management GmbH (“Afinum”) is one of the leading medium-sized investment companies in the German-speaking market.

Due Diligence

Sell-Side Advisory

Principal Investors and Private Equity

Technology, Media, and Telecommunication

Reading Time 3 Minutes

Key Results

Commercial vendor due diligence

and business plan realized in a very short time.

Outstanding result

and an attractive purchase price achieved.

Highly tailored process

with results delivered in a time frame of two months.

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The challenge

In mid-2021, Afinum agreed to divest the Garz & Fricke Holding GmbH (“Garz & Fricke Group”) to SECO S.p.A. (“SECO”), an Italy-based embedded computing player.
Afinum and the Garz & Fricke Group required external support to depict a potential equity story (standalone growth options and synergy potential with SECO), as a basis for the negotiation process.

In a business meeting two men are shaking hands.

The solution

We were mandated by Afinum and the minority shareholders of the Garz & Fricke Group as M&A and commercial advisor. Our Corporate Finance and Management Consulting teams worked closely together to develop an optimized equity story and business plan and to identify and quantify the synergy potential.

We conducted a commercial vendor due diligence highlighting key aspects of the business model and a detailed modelling of the addressable market. In addition to a business plan assessment, a key element of the commercial due diligence work was the identification and quantification of the synergy potential – initially conducted as a pure outside-in process without access to internal data on the potential strategic and listed acquirer.

Subsequently, the results of the synergy model were discussed with the buy-side. That significantly contributed to SECO's strategic view of the acquisition and the negotiation process. Highly valuable input for the future strategic positioning of the combined entity was also provided by the derivation and depiction of tangible value creation levers beyond the business plan.

Thanks to the holistic approach, we managed to highlight the excellent strategic fit between the two companies in a very short time and illustrated the resulting potential for value creation in detail with a thorough scenario-based synergy assessment. A highly hands-on transaction management was instrumental in delivering the entire transaction within a tight time frame.

With the holistic approach, the team succeeded in highlighting the excellent strategic fit for the transaction within a very short time. This enabled us to achieve a highly attractive result.
Kai Roolf
Partner of Afinum Management