Our Investment strategy
Our flexible, pragmatic and fast approach allows us to be a reliable partner in complex deal situations. We are focused on businesses which are not performing to their full potential. We seek to identify and subsequently unlock untapped operational improvement and growth opportunities.
We only invest in situations where we are convinced that we can make a difference by more than the provision of capital.
Building and maintaining long-term partnerships is a cornerstone of our investment strategy.
Investmentcriteria
We are driven by the challenge unique to every situation. Most of our platform investments meet the following criteria:
Size of the business
- Revenues > EUR 15m
Profitability
- Profitable but not performing to full potential
- Also temporarily loss making
Operational value
- Operational improvement and growth potential
- Healthy core
Transaction types
- Control investments only
Equity commitment
- Up to EUR 30m per transaction
Footprint
- Focus on Germany and the UK
- Headquartered in western Europe
Situations
Hapax: from ancient Greek ἅπαξ hápax „once“, a word or an expression that occurs only once within a context. Hypax invests in unique situations. Investment situations include:
When a larger group divests a business activity, the acquirer needs to address transaction complexity and business continuity while pathing the way for a winning target business model
Typical triggering events
- Core business reviews
- Regulation driven divestitures (including antitrust)
- Supply chain and footprint reviews
Typical situational characteristics
- Business intertwined with seller’s remaining business
- Asset deals, shares deals, blended deals and reverse carve-outs
- Parts of management remain with the seller
- Cross-border transactions
- Business units and (Zebra)-plants
- Comercially incomplete businesses
- Outsourcing opportunities
- No standalone financing
When the acquirer must preserve entrepreneurial value whilst actively steering the business to the next evolutionary phase
Typical triggering events
- Unclear succession
- Disputes among shareholders
- Fragmented shareholding structure resulting in unclear decision making process
Typical situational characteristics
- Complex decision-making process with shareholders
- Incomplete management team
- Transactions influenced by structuring and tax considerations
- Operational support requirement
- Lack of digitisation
- Buy-and-build opportunities
Situations where short term stabilisation and regaining trust with financial stakeholders are to be followed by operational turnarounds
Typical triggering events
- Financial stakeholder interests infringed
- Turnaround situations meeting capital or skill shortages
- Distress where an operational turnaround is required
Typical situational characteristics
- Cash flow challenges
- Challenging balance sheet
- Unusual seasonality or volatility
- Captive situation in value chain
- Financial restructuring need
Sectors
As a situational specialist we have experience in a variety of sectors. Businesses we invest in would typically be active in the following sectors:
Consumer
Businesses operating in large, diverse and fragmented markets and experiencing increased demand for efficiency and driven by technology-enabled growth trends
Industrial
Businesses operating in niches and protected by entry barriers or their own technological expertise. In addition to attractive growth opportunities, there is often a demand for more sustainability
Services
Businesses operating in large and heterogeneous markets. Increased demands for efficiency, quality, and technology-driven innovation offer growth potential
TMT
Businesses operating in niche markets where growth is driven by regulation and technological up-grading cycles