The Equity Story

GESCO AG acquires industrial SMEs on a long-term basis, i.e. without intending to exit, and develops them further. We seek out the “hidden champions" of the SME sector: proven success record, strategically attractive market and technological leaders. We focus on companies in the tool manufacture and mechanical engineering and plastics technology segments based in Germany and with sales of around EUR 10 million and above. We specialize in succession issues and always acquire majority holdings, mostly 100%. When companies are acquired, the new management generally have a 10 – 20 % share in their company. The subsidiaries are operationally independent and receive active support from GESCO AG in the form of coaching, consulting and financial controlling. Regular investment is made in the subsidiaries to ensure that the high standard of their technological equipment is maintained. Our aim is to increase the value of the individual companies on a sustained basis, thus increasing the value of the Group as a whole while achieving good operating results. The model optimises opportunities and limits risks. The abundance of unresolved succession issues in the German SME sector also provides scope for external growth through further acquisitions. We stay true to the spirit of a family company while shaping companies to cope with globalisation. For investors, GESCO shares offer the key to ambitious SMEs.