Seeking Co-Investor for Repositioning in Munich (Asset Deal)

We are seeking a financially sound majority co-investor for the acquisition of an attractive boutique hotel in downtown Frankfurt. The asset is currently undergoing due diligence. The transaction is deliberately structured to be investor-friendly: • An ongoing 5% p.a. preferred distribution that takes priority over the sponsor (us) • Full capital priority upon exit (capital protection layer) • Participation in the asset’s appreciation—without additional performance carry • Clearly defined exit mechanism (for flexibility in the event of liquidity needs or to capitalize on market opportunities) • Closing only upon execution of a legally binding lease agreement with a minimum term of 5 years (cash flow hedge) Indicative conservative ranges of target returns from an investor’s perspective (projected over an 8-year holding period): • Current cash-on-cash: 5.0–8.3% p.a. • MOIC: 1.4x–2.3x • IRR: 6.5–14.2% p.a. We are seeking an equity commitment of EUR 1.0 million (effective drawdown of approximately EUR 900k as a one-time payment upon closing) with a term of approximately 8 years. A professional LBO structure with attractive financing will leverage the return on invested equity.

A well-established, owner-managed timber construction company in central-western Germany is for sale as part of a planned succession plan. The transaction offers both strategic investors from the industry and qualified management buy-in (MBI) candidates the opportunity to acquire a financially sound company with an excellent market position and sustainable growth prospects. The acquisition can be structured either as a share deal (100% of the GmbH shares) or an asset deal. The business property can also be purchased if desired, or alternatively leased on a long-term basis. The company has been successfully established in the market for many years and enjoys an excellent reputation in timber construction. Its range of services includes traditional carpentry work, modern wood-frame construction, as well as the design and construction of energy-efficient homes, residential buildings, industrial facilities, and commercial properties. The offering is complemented by specialized services in building thermography and building insulation using ISOCELL cellulose insulation. The company’s existing RAL certification (RAL GZ-422) underscores its high quality standards and technical expertise. With ten qualified employees, the company boasts an experienced and dedicated team. In addition to the owner, there is already an effective second level of management, which includes a young master craftsman in training, ensuring a structured transition and the continuity of day-to-day operations. As a recognized training company, the firm continuously invests in the development of its own skilled workforce and benefits from high employee retention as well as an excellent reputation as an employer. The business model is characterized by a strong market position, high brand awareness, and long-standing relationships with clients and architects. A stable order book with a healthy project pipeline ensures reliable capacity utilization and offers the acquirer a solid foundation for the company’s further development. At the same time, ongoing trends toward energy-efficient construction and sustainable timber-frame building concepts open up attractive growth opportunities. The company also presents a solid financial picture. In recent years, revenue has ranged between approximately €1.3 million and €1.7 million. Normalized EBIT ranged—depending on project structure and fiscal year—between approximately €70,000 and €174,000. These results reflect the company’s sustainable profitability as well as the stability of its business model. Overall, this presents a rare opportunity to acquire an established timber construction company with an excellent reputation, a high level of technical expertise, a well-coordinated organization, and long-term market potential. The existing structures, the qualified workforce, and the stable market position create excellent conditions for the successful continuation and further expansion of the company.