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Corporate Succession Settled—But Things Turned Out Differently at First
The company, whose core expertise has always been in the fields of window, door, and facade construction, had been successfully managed for over 30 years by the owner, Mr. Dieter Thomas, and his wife, Maurita Thomas. In 2012, as part of an internal family succession plan, the company was to be handed over to their two daughters. However, after the internal family succession had already been initiated, the daughters’ living circumstances changed geographically to such an extent that the succession plan for Metallbau Kaiser GmbH had to be revised.
The challenges within the M&A process—the bar for the potential successor was set very high
Given the company’s high profile and excellent reputation in the Rhine-Main region, prospective buyers were identified relatively quickly. Promising contacts with potential buyers were established, in particular through U.M.P.’s network, by directly approaching selected target investors, and by utilizing national business matchmaking platforms.
Following a thorough review, discussions were held with the most promising prospective buyers. In addition to companies from the industry, the region, and other federal states, the group of prospective buyers also included qualified individuals.
However, the seller’s requirements for his successor were very high. Since the first attempt to arrange for succession within the family had not been successful, the second attempt—to arrange for succession through the sale of the company—had to be a success at all costs. In selecting his successor, Mr. Thomas, as the seller, placed particular emphasis on the following factors:
In-depth industry and market knowledge
Professional and interpersonal skills of the future management team
Financial strength, so that the company has room for future investments and growth.
The path to finding a suitable international investor was made possible with the help of the DUB Exchange
Although there were several qualified prospective buyers among the applicants, the entrepreneur was unable to decide on any one of them. It was jointly decided to expand the search for an investor internationally. In addition to directly approaching identified target investors in neighboring countries, the DUB (German Entrepreneurs’ Exchange) portal was also used to establish contacts. In July 2019, this led to contact with the Dutch, family-run JAZO Group.
After initial online research and phone calls, it quickly became clear that the JAZO Group, with its service and product portfolio, would be a very good fit for Metallbau Kaiser GmbH. A visit to Mannheim was arranged at short notice with the owner of the JAZO Group (Mr. Axel Jansen) and his management team. This initial in-person meeting was followed in October 2019 by a return visit to the Netherlands, allowing the selling party to gain a detailed overview of the JAZO Group’s capabilities.
During the two-day visit to the Netherlands, mutual trust was solidified, leading to the signing of a Letter of Intent (LOI) while the visit was still underway. It then took about six weeks for the buyer to complete its due diligence and for the contract documents to be finalized in detail. In December 2019, the transfer of Metallbau Kaiser GmbH was successfully completed before a notary. Since then, Metallbau Kaiser GmbH has been another company within the JAZO Group.
Metallbau Kaiser GmbH Strategically Strengthened Through the Succession Plan
As a member of the JAZO Group, Metallbau Kaiser GmbH benefits from the parent company’s level of innovation, product portfolio, and international focus. The buyer, Axel Jansen, adds, “Metallbau Kaiser GmbH’s range of services—which continues to include the manufacture, delivery, and installation of windows, doors, fire protection elements, and facade construction, has been expanded to include shielding, access control, and ventilation for technical rooms, as well as fire- and burglar-resistant doors, soundproof doors, and ventilation grilles.”
In the meantime, investments have been made in both expanding the workforce and upgrading the machinery. The digitization of business processes is one of the next initiatives to be implemented. These are thus ideal conditions for Metallbau Kaiser GmbH to successfully continue on its current growth trajectory.
Mr. Dieter Thomas sums it up: “It’s wonderful and reassuring that my company has now become part of a successful, internationally active corporate group, that jobs are secure, and that Metallbau Kaiser GmbH can look to the future with optimism.”
