Our Investment strategy
Sofindev provides financial and strategic support to healthy Belgian companies looking for a trustworthy partner to realize their growth strategy or to buy out shareholders confronted with a succession issue.
Sofindev invests in these companies through equity and subordinated and/or convertible loan instruments. This capital injection can be used to increase capital (expansion capital), to acquire existing shares in an Owner Buy Out (OBO), Management Buy Out (MBO) or Management Buy In (MBI), or a combination of both. Sofindev takes both majority stakes and significant minority stakes. Sofindev will act either as sole financial investor or as a co-investor with other investors.
Sofindev typically targets companies with an entrepreneurial spirit, looking for an experienced partner to strengthen management, structure and decision making processes.
These companies are often led by strong entrepreneurs and can benefit from professionalizing the company’s structure, processes and decision making. It is Sofindev’s ambition to maintain the key factors which were instrumental to the company’s success in the past, i.e. its entrepreneurial spirit and vision, but also to add value through improvement of the operational structure and reinforcement of the management, systems, tools and decision-making required to realize profitable growth, in Belgium and abroad.
Belgium is a country of small and medium-sized enterprises. We believe SMEs are particularly attractive to invest in because they often provide significant value creation potential through a combination of the entrepreneurial spirit which lies at the core of their success and support by a professional investor like Sofindev.
The companies we invest in typically generate sales above 10 million Euro and have an operating cash flow (EBITDA) of at least 3 million Euro. We invest in a wide diversity of sectors. The companies we typically invest in have a demonstrated profitable and solid business model, are usually leading players in their home markets, and present clear growth potential, due to a positive underlying market trend, organic market share growth or buy-and build potential. Most often, international growth is on the agenda of the businesses we invest in. Our focus is on providing the ideal circumstances – people and organization, to realize this growth potential and to help our portfolio companies to reach the next stage of development by leveraging our experience, knowhow and network.
At Sofindev, we believe that the best way to create value is through strong partnerships with the entrepreneurs and managers with whom we co-invest. This partnership approach is the cornerstone of our investment strategy and is perceived as a strong differentiator.