GESCO AG FAQ

GESCO acquires well-established, profitable companies in the industrial SME sector, typically in the scope of resolving a succession issue. We acquire up to 100 percent of a company and appoint a new managing director, who then generally acquires a 20 percent stake in the company being managed after a trial period. We maintain a long-term investment in companies and do not intend to sell them at a later date. 

Our portfolio focuses on the segments tool manufacture, mechanical engineering and plastics technology. In a broader sense we acquire companies from the plastics and metal processing industry. Sales should not fall short of EUR 10 million by too much, the company should be profitable and have a sufficient amount of equity. We only get involved in companies requiring restructuring in very well-founded exceptions.

In contrast to most investment companies and private equity companies we acquire companies with a long-term investment horizon. We are not exit-driven, i.e. we don’t intent to sell companies at a later date. This is essential to business owners selling their companies:  we are carrying on their life’s work as they would have. 

What also sets us apart from comparable companies is our principle of having managing directors hold a stake in the company they run. This offers considerable advantages to all parties involved, provides greater stability to each individual company and to the Group as a whole, and ensures that interests are balanced. All decisions are focussed on the long-term success of each company and success in this context mainly refers to one thing: sustainable profitability.

Our dealings with the capital market are driven by great transparency as well as open and proactive communications. 

Because then the company is going to be in good hands. Our objective is to continue operating the company successfully, in the long-run and as it is. This is exactly what business owners selling to us have in mind: they want to see their life’s work continued and more importantly, they want to rest assured that jobs are going to be preserved.

We are granting access to a portfolio of attractive SME companies to private and institutional investors – companies which are typically all but out of reach to investors. We are offering investors a focussed portfolio (not “a bit of everything

As an investor, the GESCO share gives you access to an attractive portfolio of highly-profitable SME niche players. These companies have experienced management and typical SME strengths: a highly motivated and expert workforce, which identifies with the company unconditionally, as well as creativity, speed, innovation, and superior market insight and customer service. Our business model is “storm proof

No. GESCO was founded by a group of private investors in 1989. The stock has been listed since 24 March 1998. There is a broadly spread free float of 90 percent.

When we buy a company in the course of resolving a succession issue, all involved parties benefit because a successful company is being preserved. As soon as a company is part of GESCO Group it benefits from consulting services and the chance to share ideas. It can draw on professional expertise held in GESCO AG as well as in other companies in the Group. GESCO AG actively encourages information sharing within the Group. At the same time, being part of a Group also gives the company a good standing with banks, customers and suppliers. The structure of GESCO Group is tailored to capitalise on typical SME strengths and eliminate or avoid typical SME weaknesses.