We are different
We are solution providers – As turnaround investors we are a solution provider to the seller because we acquire businesses that require management attention. For each transaction we seek to understand the situation not only of the target company but also try to understand the seller’s needs and adapt our concept accordingly. With a speedy transaction execution and a quick disentanglement of the target from its former parent, we help the seller to refocus on his core business and we liberate the target and its management from the constraints of its former parent company.
We think operational and act as entrepreneurs – We are conscious takers of risk, ready to step in where others seek to exit.
We expect from a project that it is based on solid planning with realistic budgets. Post transaction, we carry out the initial carve-out and restructuring ourselves thus providing expertise and manpower for the most demanding phase of the turnaround.
We are pragmatic and focus on the key issues. During our analysis we focus on understanding the reasons for the current underperformance and the short- to midterm development options.
Usually, we include all key terms and conditions in a term sheet that then leads to a lean purchase agreement.
We are flexible and can act quickly – Being a small team without the constraints of a fund structure we can flexibly address the needs of the sell side. If needed we can prepare a binding offer at short notice and be ready for closing without any delay.
We are outspoken and respect our commitments – We commit to make our best effort to analyse a transaction and to submit a serious offer right from the beginning. We are open and transparent in the process and we respect the terms and conditions of the term sheet once it is signed.
Navigator Capital seeks majority stakes in small and medium-sized European companies that require increased management attention because of operational problems or because of a complex carve-out situation.
Our investment focus is as follows:
- Majority stakes
- European businesses with a focus on Western and Central Europe as well as UK
- All industries with the exception of R&D and asset focused businesses
- Small- and MidCaps
- Negative EBIT margins
- Potentially insolvencies
When invited into any transaction process we prepare an indicative offer based on preliminary information. The indicative offer serves as a basis for discussion.
When admitted into the due diligence phase we will carry out an in-depth analysis of the situation and will specify our ideas to improve the situation. As we typically do not rely on external support for due diligence we do not need more than three to seven days for completion of the due diligence.
During due diligence we also expect to meet with the company’s management and with representatives of the shareholders to discuss our due diligence findings and to jointly develop a restructuring concept and budget.
Based on these findings we provide the seller with a binding offer and start working on a comprehensive business continuity concept.
Our goal in the process is to reach a
common understanding with the seller. We request feedback on the various points of our offer. As long as it is economically viable for us, we try to structure the transaction according to the seller’s requirements.
Once the seller agrees with our business continuity concept and we agree on a restructuring budget, we push for the signing of a term sheet.
Carve Out and Restructuring
Since we develop our carve out and restructuring plan already during due diligence and start preparations shortly thereafter, we have a clear plan and contracted partners at hand at closing.
The carve-out can take three to nine months post transaction, while the core restructuring period can range from 12 to 24 months.
Being an active investor we will send a seasoned member of our team into management and complement him by an additional industry expert if deemed appropriate. The holding company will provide additional manpower and expertise.