Market Segment

With its focus on LBOs of small to mid-sized "Mittelstand" companies, Wieland Capital is focussing on an attractive market niche


Wieland Capital focuses on companies with revenues in the range of Euro 5 to 75 million. This market is characterized by:

• High deal flow - there are approximately 20.000 companies within this size bracket in Germany in the manufacturing sector alone, allowing for a continuous flow of companies being sold
• Owners' increased willingness to sell - especially caused by a large number of upcoming successions, but also due to the difficult market environment, both with regards to competition as well as to financing
• Attractive valuations - from the buyer's perspective, valuations are often more appealing in the market for small to mid-sized companies than for larger companies. Reasons for this include, among others, that:



• The majority of private equity funds and investment banks focus on the larger and largest corporations
• There are much fewer large companies and the market for large transactions is much more transparent for all participants
• A relatively higher proportion of equity capital must be deployed to finance acquisitions, because banks do not contribute as much debt for smaller transactions
• Considerable growth and value enhancement potential for these companies
• A plethora of attractive niche markets - which are too small and therefore unattractive for larger companies and financial sponsors

A detailed description of the target market and its key fundamentals can be found under Background-information: "Mittelstand" - Backbone of the German economy

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