Your testing service comes back every year
Your inspectors test equipment and installations under DGUV Regulation 3. Clients book again every year. There is no successor in the family.
Does this sound familiar?
Four service businesses facing the succession question
We know these situations from talks with owners. One of them may be yours.
Your maintenance contracts have run for years
You maintain ventilation, refrigeration, compressed air or doors for commercial clients. The contracts renew every year. The knowledge about each system sits with your master technicians.
Your electrical business lives on service
Besides installations, you look after your clients' systems under maintenance contracts. This part carries your result. A buyer should understand exactly this part.
Your energy service looks after existing systems
You maintain heating systems, combined heat and power plants or photovoltaics for commercial clients. Orders keep coming, technicians are scarce.
What we buy
Five segments in this core sector
What matters is the share of recurring service under contract. Electrical testing has its own page. We describe the other segments on our main site, in German.
Electrical testing under DGUV Regulation 3
Testing services for portable equipment, fixed installations and machines.
Minimum size: 10 or more field inspectors
More on this segment
Electrical engineering with maintenanceElectrical businesses with maintenance contracts for systems in industry and commerce.
Maintenance and testing as a substantial part of the result
More on this segment (in German)
Metalworking with serviceMetalworkers who maintain and test doors, gates and systems at the client's site.
Contract-based service as a substantial part of the result
More on this segment (in German)
Contract manufacturing with a service componentManufacturers with framework contracts, maintenance and spare parts service for industrial clients.
Framework contracts and service as a substantial part of the result
More on this segment (in German)
Energy servicesMaintenance and operation of heating, refrigeration and energy systems for commercial clients.
Maintenance contracts as a substantial part of the result
More on this segment (in German)
What we do not buy
- Software companies
- IT system houses
- Marketing and advertising agencies
- Law and tax firms
- Nursing care services
- Security services
- People-based businesses without scalable infrastructure
Why we buy this sector in particular
Three reasons why we buy in this sector
Operator obligations create recurring orders
Businesses must have electrical installations and work equipment tested regularly. DGUV Regulation 3 and the Industrial Safety Regulation (BetrSichV) set this out. These orders come even in weak years.
Maintenance contracts make revenue predictable
A maintenance contract usually renews every year. The client rarely switches as long as dates and reports are right. That carries the value of your business.
Many service businesses are looking for a successor
Most providers are regional and owner-managed. Often there is no successor in the family or team. We buy these businesses and keep running them independently.
Our acquisition profile
Criteria for this core sector
What we require
- EBITDA €0.5m to €5m, profitable and owner-managed.
- Based in Germany, succession or majority sale.
- Mostly recurring service under contract.
- A team of technicians and master technicians that works without the owner.
- Digital documentation of tests and maintenance, or a clear path to it.
Value drivers
- Framework and maintenance contracts with industry and commerce
- Specialists with their own qualifications and their own client contact
- Test and maintenance data in a database
- Clients from several industries and regions
What lowers the value
- Mostly project and installation business
- The owner personally holds the key customers
- If a large share of revenue depends on one customer, the price goes down.
- Reports completed by hand afterwards
What you get in the first call
The first call takes 30 minutes, is confidential and is held with a partner. We work out your value in the first call using your numbers. Afterwards you get our assessment in writing, even if we decline.
What we plan
After the acquisition: what stays and what is added
We build a group from several owner-managed businesses. Each business stays independent and shares back office and purchasing with the others.
Independent, as before
- Name, brand and your phone number
- Location, workshop and vehicles
- Your team and local management
- Client contracts and the familiar contacts
- Your prices and your professional signature
What applies to your company, we put in the purchase agreement.
New in the group
- Back-office relief
- The system handles invoicing runs, test reports and standard correspondence. Your people check and approve.
- Recruiting
- Joint job postings, training paths and cover between the businesses in the group.
- Joint client development
- Your clients often need services from the sister businesses too. We only recommend them with your consent.
- Purchasing
- Measuring equipment, vehicles, spare parts and insurance on terms for the whole group.
- Capital
- Equity from the fund is available for filling positions, expanding locations or add-on acquisitions.
Why this route
Succession is settled, and your business stays independent under its own name. In the group it buys more cheaply and finds staff more easily. You decide whether you keep leading or leave after the handover.
Process
The process at a glance
- First call30 minutes
Confidential, with a partner. NDA in advance on request.
- Responseusually within 72 h
Yes, no or open questions. Always in writing and with reasons.
- Indicative offer2 to 4 weeks
After reviewing figures, client list and contracts.
- Due diligenceafter the offer
Focused on contracts, team and documentation.
- Signing and closingusually 6 to 9 months after the first call
Purchase agreement with you and your lawyer.
- Handover6 to 24 months
If you wish, you stay as interim managing director, often followed by a seat on the advisory board.
Why we buy this sector
A service business lives on clients who have come back for years. We buy these businesses with their technicians and master technicians and run them on under their own name.
I lead the offer, valuation and negotiation. We show you the calculation behind our offer openly.
For M&A advisors, tax advisors and succession advisors
Minimum sizes and teaser metrics for industrial service
Here are the metrics we need in the teaser and our commitments to you.
Minimum sizes
- Platform from €0.5m EBITDA, smaller businesses as add-ons
- Electrical testing: 10 or more field inspectors
These metrics belong in the teaser
- Share of maintenance and framework contracts in revenue and their remaining terms
- Revenue share of the largest client
- Number of technicians, master technicians and qualified persons
- Number of systems or client sites served
What you get from us
- You usually get a clear answer with reasons within 72 hours. A no also comes in writing.
- We only approach your client through you.
- The price in our indicative offer only changes if due diligence shows something different from your documents.
- Capital comes from our €60m fund. We do not look for investors during the process.
- If your client does not fit us, we tell you who might.
All segments and minimum sizes: Acquisition profile for advisors
Frequently asked questions
What owners ask us
Do you also buy electrical or metalworking businesses with project work?
Yes, if a service unit with maintenance contracts delivers a substantial part of the result. We do not buy pure installation and project businesses.
How large does my company have to be?
Our acquisition profile starts at €0.5m EBITDA. For electrical testing, we look for at least 10 field inspectors. We buy smaller businesses as add-ons to an existing platform.
What happens to my technicians?
All employment contracts remain in place. The system creates the documentation, your technicians check and approve it. Your people stay in the field with the clients.
How long do I have to stay after the sale?
You decide. 6 to 24 months as interim managing director is common, often followed by an advisory board seat.
How quickly do I get an answer?
Usually within 72 hours after the first call. An indicative offer follows 2 to 4 weeks after we have seen your documents. We usually expect 6 to 9 months to closing.
What is my company worth?
The value is determined by the adjusted EBITDA of recent years. Recurring contracts and an independent team raise it. We work out your value in the first call using your numbers.
Should I sell with an M&A advisor?
That is your decision. Many owners work with an advisor, and we are happy to work with them. A good advisor prepares documents and saves both sides time. If you come directly, the partners run the process themselves. In any case, you should bring in your own lawyer and tax advisor.
First step
Talk to a buyer who knows your sector
A 30-minute call is enough to know whether we fit. Afterwards you get a written assessment with reasons.
Request a confidential first call
Or call us: +49 40 89741812
ConfidentialOnly the three partners see your enquiry. An NDA is possible in advance on request. We share nothing with third parties.