To Droege Capital Direct Investments

Own resources

As an owner-run investment company, Droege Capital is in a position to make important business decisions quickly. Our highly productive team pools the transactions experience of our finance experts together with the expertise of top Group managers who can draw on a wealth of industry experience. It is this combined knowledge that makes us capable of delivering the necessary process and turnaround security. And thanks to our sound equity capital situation, we are able to implement our acquisitions with a high degree of financial stability.

Expert in restructuring and growth Our holistic corporate programs are based on restructuring and growth strategies and measures aimed at enhancing company value. To achieve this, we work with five operational levers that are organized into subprograms: revenue optimization, cost reduction, cash financing, organization & management and integration/PMI. This structure is designed to directly address our clients’ core processes. Thanks to our proven expertise in all key industry sectors, we are familiar with the specific processes at the heart of any organization, whatever the field of activity. Needless to say, we are also well versed in the relevant best practices and benchmarks all over the world. This goes for example for product manufacturing processes in the automotive industry as well as for supply chain management in mechanical engineering, category management processes in retailing, service processes in medical technology manufacturers, or sales and back office processes at financial service providers. Stage 1: Preliminary study The first stage is designed to make the business development transparent and to define strategies as well as objectives of the restructuring program. Based on our proven 80:20 analysis, we spend two to four weeks examining the company’s market and competitive position, its current trend in turnover and revenue development and its financial and liquidity status. We also appraise the existing organization, core processes and human resources. Using customer-specific benchmarking and best-practice data, we identify and quantify preliminary optimization options and distill them into a top-down business plan. If need be, we provide first measures to secure the cash flow. Stage 2: 100-day program At the second stage, Droege & Comp. experts use their industry and functional expertise in devising a comprehensive 100-day program. It breaks down operational levers, quantifies the expected improvement potential, defines individual measures necessary for implementation and adapts management structures as well as existing incentive schemes. At the same time, we set up the proven Droege & Comp. ProgramOffice to oversee project management and control the individual measures from a single vantage point. And by establishing mission-critical key performance indicators (KPIs), we keep track of the exact progress made in the project. Stage 3: Operational excellence In stage three, we initiate measures designed to achieve operational excellence, focusing particularly on optimizing revenues, personnel, material and non-material costs, as well as the working capital. In addition, we work towards increasing the productivity of the core operational processes. We evaluate any long-term investments and establish priorities for the effective and efficient use of IT or R&D activities. Stage 3: Operational excellence – interim management In order to safely implement complex restructuring and efficiency enhancement initiatives, managers with industry experience from within the Group can assume temporary functional responsibility. They usually take on senior management positions, acting as Chief Restructuring, Financial or Executive Officers (CRO, CFO, CEO). Our interim managers are natural leaders with many years of implementation experience and an impressive number of turnarounds to their name. Stage 4: Strategic development The fourth and final stage focuses on medium- and long-term strategic development. Working closely with corporate management, we put together dedicated project teams that take on individual areas of optimization. Their tasks may include finding new product, market or regional strategies, define acquisition plans or – if the project involves private equity firms – devise an exit strategy. Communications and change management Expertise in communications Active and targeted communication with all stakeholders is key in change processes. We assist in managing all relevant communications channels of the internal and external communication aiming at understanding, acceptance and motivation. Therefore, we develop processes, communications plans and content for each individual target-group. Expertise in change management Change management supports the employees during all phases of change. Measures encompass organizational development, identification of new competencies, coaching, training and conflict resolution. All of these measures are targeted towards the greatest staff motivation and thus productivity possible. We provide proven instruments for the management of complex change processes and create programs, which contribute to the development of the entire company.