Working with KS Investments SA

OUR STRATEGY

We support achievement of increased growth and value through patience and hard work, guided by a long-term strategic view. We get to know each company thoroughly so we can help make thoughtful improvements. We don’t seek to fix what isn’t broken.

We have never been a firm that invests for fast profits. Instead, our objective is long-term capital appreciation. We work closely with management teams to assure an alignment of interests, typically implementing equity plans for company executives to give them a stake in their company’s success.

Our goal is to make good small-medium companies even better. We do this over time by providing the resources, knowledge and talent to implement positive, growth-producing changes.

At KS Investments, we are not looking to run companies. We believe each company’s management team should run the company. In some cases, business owners continue to manage their business after a sale. In other instances, the owners retire and transition out fairly quickly.

INVESTMENT RATIONALE

The KS Investments value proposition focuses on representing “the” smart capital for portfolio enterprises, addressing both structural financial and strategic management needs and opportunities.

In detail, these needs stem not only from:

  • The completion of acquisitions or the implementation of other strategies aimed at accelerating growth (building of new plants, new market entry, new product launches, etc.).
  • The need to rebalance undercapitalised financial structures, which could otherwise limit the development of a business.
  • The decision of one or more shareholders to sell their equity stakes, for instance within the framework of a succession process or as a consequence of diverging interests.

But we also provide support in:

  • Defining and implementing development strategies (e.g. scouting new client opportunities, new market entry, investment targets).
  • Identifying and introducing managerial resources, with specific regard to the finance, administration and control areas.
  • Streamlining the capital base.
  • Researching additional financial resources for extraordinary projects.

TARGET COMPANIES

KS Investments invests in small and medium-sized enterprises (SMEs) active in a broad spectrum of industrial sectors.

The most significant criteria followed in the investment opportunity selection process include:

  • Focusing on healthy private businesses with revenues ranging from €5 million to €30 million.
  • Identifying companies with a strong competitive positioning.
  • Giving preference to industrial sectors characterised by a significant growth potential through internal development or acquisitions.
  • Focusing on the experience and skills of the entrepreneur and of the management team.

KS Investments does not invest in start-ups or business turnarounds.

KS Investments has a particular focus on the following markets:

  • Industrial product manufacturers with the following characteristics:
    • Market leadership in a niche or expanding market segment
    • Branded products with strong market awareness
    • Multiple channels of distribution (direct, distributor, catalogue, etc.)
    • Proprietary, company-owned product designs
    • Revenue of €5 to €30 million and a history of profitability

Sample company types include capital equipment manufacturers, material handling products, packaging products and packaging equipment manufacturers, and building products.

  • Value added distributors with the following characteristics:
    • Source of consolidated supply for a large number of products
    • Large, fragmented customer base that relies on the distributor for products and service
    • Sells owned and distributed products
    • Leverages systems to improve service, delivery and profitability
    • Service component of sale protects the business from digital disintermediation
    • Revenue of €5 to €30 million and a history of profitability

Sample markets of interest include value added distributors in industries as varied as fashion products, gardening seeds, beekeeping products and eyewear.

  • Niche product or service companies with the following characteristics:
    • Market leadership in a niche or expanding market segment
    • Branded products or services with strong market awareness
    • Located in or around Europe
    • Revenue of €5 to €30 million and a history of profitability

Sample markets of interest include automotive or motorcycle parts, consumer products or services, car wash equipment and operators, B2B or B2C niche rental businesses, financial technology and applications, among others.