Good reasons to invest in GESCO shares 

Hidden champions, market and technology leaders, all in the one share

  • Access to Germany’s technology-driven Mittelstand

    The GESCO share offers you access to leading companies in Germany’s technology-driven Mittelstand. Every single company has a successful history to show for itself. All are established players in their respective target markets – and a number of them are even world market leaders. As a long-term investor, GESCO acquires successful companies in four strategically attractive segments: Production Process Technology, Resource Technology, Healthcare and Infrastructure Technology as well as Mobility Technology. Takeovers mainly occur as part of succession planning, both through management buy-outs (MBOs) and management buy-ins (MBI), and also through group spin-offs.

  • High-value, healthy substance and low balance-sheet risks

    The subsidiaries of GESCO have excellent capital adequacy levels. Regular investments ensure their technological excellence. In the course of the succession arrangement, the new manager takes on a ten to 20 per cent stake in the company, depending on its size. This crucial entrepreneurial component of the GESCO model ensures that there is a balance between the interests of all those involved: both management and GESCO AG as the majority shareholder are equally committed to the company’s long-term interests.

  • Long-term, attractive dividend policies

    Since the IPO on 24 March 1998, investors have been participating in the commercial success of the GESCO Group through our transparent and predictable dividend policy. Shareholders have received a distribution every financial year. GESCO gears the distribution to a ratio of about 40 per cent of group net income for the year after minority interest.

  • Growth potential based on the large number of unresolved succession issues among German SMEs

    • The numerous unresolved succession issues among German SMEs offer GESCO considerable potential for external growth. The Institut für Mittelstandsforschung in Bonn, an institute for research on small and medium-sized enterprises, anticipates that succession plans will be pending for 135,000 companies between 2014 and 2018. In around half of these cases, a resolution of succession planning within the family is considered unlikely.

    • And the issue is here to stay. Companies are founded every day; however, handing down the company within a family is becoming increasingly rare. We also achieve internal growth by further developing subsidiaries together with their respective management teams.