Donaueschingen, where the Brigach and Breg rivers converge to form the second-longest river in Europe, is one of the most important hubs for German machinery manufacturers. Small and medium-sized companies are strung together there like pearls on a necklace. One of them is Backtechnik S.I., a manufacturer of bakery machinery that has been selling its products worldwide for 18 years.
The company’s profile has also caught the attention of Jakob Preisenberger, managing director of Kapitalkontor. “The goal of our corporate group is to invest the equity we’ve generated into micro and small businesses in order to build a portfolio of unique niche specialists,” says Preisenberger. To that end, he is looking for companies in the service and manufacturing sectors with proven business models that promise stable returns in the future
Diverse Requirements
After founding Kapitalkontor in January 2019, Preisenberger’s plan took off extremely quickly: “By June, we had considered approximately 260 opportunities and shortlisted about 25 of them, meaning we conducted initial discussions and reviewed documentation.”
On the DUB.de portal, for example, he came across an ad from the M&A consulting firm COVENDIT, which was seeking a buyer for Backtechnik S.I. “Due to the company’s very specialized positioning and lean structure, the search for a new owner was not an easy one,” says Bernhard Kluge, managing partner of COVENDIT. “The requirements for the buyer’s profile were diverse: technical expertise, international sales experience, and a suitable financial background to be able to finance the acquisition of the company.”
Get Involved, Help Shape the Future
The initial meeting regarding the acquisition of Backtechnik S.I. took place just one month after Kapitalkontor’s market launch. Ultimately, three factors convinced Preisenberger: the company’s large export market, its products, and the seller. “By decoupling from the German domestic market—where the invested capital originates—we achieve the best risk diversification for the successful implementation of our strategy,” says Preisenberger. “Furthermore, in the specific segment where Backtechnik operates, there is virtually no competition offering products of the same quality.”
But that alone wasn’t enough. “The deal was ultimately sealed because all discussions with the sellers—both in terms of content and interpersonal rapport—were characterized by trust and sincerity. We conducted swift, results-oriented negotiations in which there were no surprises or embellished figures,” says Preisenberger. All parties met for the first time at the end of February, and the contracts were signed by the end of May.
And then? “Taking over such a well-oiled company takes a certain amount of time.” Preisenberger speaks of an intensive handover phase that followed the formal transaction. “It was important to us from the very beginning that we become deeply involved in the company on a personal level. Remote management simply doesn’t work for a small, medium-sized business. You have to participate, help make decisions, and help shape the company’s direction.”
Satisfied with his decision to purchase the company, Preisenberger emphasizes the business objectives: “Together with the selling shareholders, we drew up a realistic strategic plan early on that integrates the development of the business units, workforce expansion, internal structure, and financial planning. Our most important goal is to achieve even greater brand presence internationally and to grow in a healthy, sustainable manner.”
