Case Study GFS

Acceleration of the growth path:

GFS Gesellschaft für Statistik im Gesundheitswesen sold to investment company Marondo.

Healthcare

Technology

GFS

"It was clear to us that we couldn't handle the complexity of a sale on our own. We had already worked very well with Mr. Walther in the past, so macx. was in pole position."

Dr. Jamshid Javdani

Former shareholders, now managing directors
Year of the transaction
1000
Potential investors
0
Indicative offers
0

Overview

Project description

The company GFS Gesellschaft für Statistik im Gesundheitswesen had several owners of retirement age who were looking for a "good home" for the succession and wanted to realize the share value. Walther Transaction exclusively advised GFS in its search for a new suitable majority shareholder. With the investment company Marondo Small Cap Growth Fund I, such a shareholder was found for the expert in healthcare billing audits.

As part of the sales process, over 160 potential investors from Europe were approached in order to create a competitive situation that was advantageous for the sellers, and 14 indicative bids were submitted. This bidding process allowed the sellers to focus on the bidders with the highest strategic and personal fit. It also resulted in a higher multiple than previously anticipated, exceeding the sellers' financial expectations.

Dr. Jamshid Javdani remains managing partner and has in turn re-invested in the GFS Group as part of the transaction, while Mr. Nikolaus Maier remains in the company as an authorized signatory.

Involved companies

Seller: GFS

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Buyer: Marondo

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Interview seller

Dr. Jamshid Javdani & Nikolaus Maier

Former partners, now managing director and authorized signatory of GFS

What were the reasons behind the decision to sell the
to sell the JRC?

This step was preceded by a lengthy discussion. The main reason was that the now retired shareholders, who had accompanied the JRC for many years, decided to make room for a new investor for reasons of age, who could bring in fresh forces and a new network. And we had made a gentleman's agreement at the time that we would not sell part of the company, but only all of the shares.

With Marondo, both the overall package and our gut feeling were right. We see good opportunities for stable, sustainable growth as a result of their investment.

Anführungszeichen

How difficult was this step for you emotionally?

Such a step is certainly not emotionally easy and the decision to take it was not an easy one for us either. We had worked very trustingly with the previous shareholders for 10 to 15 years. Now we had to say goodbye to them and get involved with a new partner in the hope that the collaboration will work just as well. A change like this brings with it uncertainties that you have to accept.

Why did you decide to seek support from an M&A consultancy?

It was clear to us from the outset that we would not be able to handle the complexity of a sales process ourselves and that we would not be able to estimate the details of the issues we would face. Only professional support would lead to a successful, satisfactory result - also in view of the short timeframe that our shareholders had given us for the sale. After all, the sale was to be completed within six months.

Why did you choose Walther Transaction?

We have known Mr. Walther for a very long time and had already worked with him very well and trustingly in the past - both on a human and a business level. It was therefore clear that if we were to work with a professional M&A consultancy, Walther Transaction would be in pole position. Of course, the conditions and contract details still had to be clarified, but we reached agreement on all points.

What criteria were important to you when looking for an investor?

In addition to the sales proceeds, the mindset of the new investor was particularly important to both of us - who are still active in the company. Can he support our ideas, does he accept the JRC's processes, how long-term is he planning his involvement? We wanted to have these things clarified in advance so that we would not be more concerned with the new investor than with our actual work in the future. We wanted to be sure that the cooperation would run just as smoothly as with the previous shareholders.

What opportunities do you see for the GFS as a result of Marondo's entry?

Marondo has other companies from our industry in its portfolio alongside the JRC. We hope that this will provide us with new networks and ideas for further improvements. As a result, we see good opportunities for new acquisitions and thus also for stable, sustainable growth.

What did you see as the biggest challenges in finding investors?

Why did they choose Marondo? The most challenging question was who was the best "human" fit for us. All the investors we spoke to emphasized that they wanted to be sparring partners and help us build a network. At a certain point, we relied on our gut feeling to come to a decision. With Marondo, both the overall package they offered and our gut feeling were right.

How satisfied were you with Walther Transaction's support during the sales process?

We were very satisfied, especially with the management and organization of the process and the communication! Of course, there was a lot of pressure on us during the sales process, as our day-to-day business continued to run in parallel and nerves also played a role at some point. But thanks to Walther Transaction, we were able to achieve almost all our goals and are therefore happy to recommend their work to others!

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Interview buyer

Dr. Christopher Höfener

Partner & Co-Founder Marondo Capital GmbH

Why does the GFS fit into your portfolio?

GFS is a well-managed company that is built on a very stable, healthy foundation and has unique technological selling points. Based on these prerequisites, we saw great potential for further growth, both organically and through further add-on acquisitions. This is exactly what we value in our investments: the companies need a USP that convinces us and that shows opportunities for us to take the company to the next level of further development together.

We had to convince both GFS and Walther Transaction that we were exactly the right partner. Other investors had also recognized the company's great potential.

Anführungszeichen

What plans do you want to realize together with the management of the GFS?
The main aim is to help the company to grow further and develop its successful business model. With the help of modern approaches, in this case artificial intelligence, we want to offer customers an even better service.

What was the main reason for your investment in the GFS?
In addition to the technological prerequisites already mentioned, it was in particular the competent management that successfully runs the company and the high level of customer satisfaction that convinced us.

What were the main challenges when investing in the GFS?
Not only had we recognized the potential of the company, but also a number of other interested parties. We therefore had to convince the management, the shareholders and Walther Transaction that we were exactly the right partner for GFS. We are all the more pleased that we ultimately succeeded.

How was the cooperation with Walther Transaction from your point of view?
The collaboration was positive throughout. Mark Walther and his team managed the entire process very professionally. It was not easy to bundle the different interests of the sellers, but thanks to Walther
Transaction, this was ultimately successful. They were also very persistent in "breathing down our necks" as buyers, which is also their job as advisors to the sellers.

How satisfied are you with the investment in the GFS?
We are very satisfied! The investment meets all our expectations and we are very confident about its further development.

 

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Interview consultant

Mark Walther

Managing Partner Walther Transaction GmbH

Mr. Walther, what was your initial situation?

I was contacted by Dr. Javdani, whom I have known and respected for many years. Most of the JRC shareholders wanted to enjoy their retirement after many years of involvement and step down as shareholders. On the other hand, Dr. Jamshid Javdani wanted to continue developing the JRC together with Nikolaus Maier and take advantage of future opportunities. We then agreed on a bidding process with all companies in order to receive as many relevant purchase offers as possible within four months of the launch, so that the shareholders could choose which of these offers best met their respective objectives.

What was special about this sales process?

Due to the Covid crisis, the sellers were undecided whether May 2020 would be a good time to start a sales process. Our thesis was that due to fewer investment opportunities for buyers in the market and the resilient business model of the JRC, the timing was very good. The sales process confirmed the disproportionately high level of interest from candidates.

What are the main lessons you have learned from this project?

That our bidding process, which is only used by our competitors when selling large companies, was very well suited to obtaining clear offers from interested parties. On the basis of these offers and the transparent presentation to the shareholders, the sometimes differing interests of the shareholders were served very well. There was also a creative solution for the sale of the company property owned by the JRC. The sale of this property was a prerequisite for the shareholders to approve the overall package.

Our bidding process, which is only used by competitors when selling large companies, was very well suited to obtaining many offers from interested parties for the GFS.

Anführungszeichen

What was special about this sales process?

Due to the Covid crisis, the sellers were undecided whether May 2020 would be a good time to start a sales process. Our thesis was that due to fewer investment opportunities for buyers in the market and the resilient business model of the JRC, the timing was very good. The sales process confirmed the disproportionately high level of interest from candidates.

What are the main lessons you have learned from this project?

That our bidding process, which is only used by our competitors when selling large companies, was very well suited to obtaining clear offers from interested parties. On the basis of these offers and the transparent presentation to the shareholders, the sometimes differing interests of the shareholders were served very well. There was also a creative solution for the sale of the company property owned by the JRC. The sale of this property was a prerequisite for the shareholders to approve the overall package.

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