The production process of industrial products is automated to a large extent. This implies high fixed costs and frequently high-energy consumption. Capacity utilisation and energy-efficiency are important success factors. Volatility in raw material prices and foreign exchange parities are real challenges for “Mittelstand” producers of industrial products.
Clients frequently expect suppliers of industrial products to follow their international expansion and create new presence abroad. In addition to Asia, the South Americas are still a growing end-consumer market.
The required capital for growth is often limited to debt, equity is not available to some companies, so cooperation with local industrial partners or partnering with a strategic investor, i.e. by selling a minority stake, are strategic options to finance such projects.
The share of management-owned businesses in this sector is high. which means succession planning is an important task. In cases without a family member being in a position to take over in the future, the sale of the company is an option.
The Industrial Products team of C▪H▪Reynolds, led by Felix Hoch, is looking forward to your enquiries.