Buy-out and Growth Equity
Our investments typically take one of two forms, or some combination of the two, largely depending on the current stage of development of the company in question.
The acquisition of a company’s shares from its owner, this investment type is largely targeted towards more mature companies already capable of funding growth from operating cash flow. Buy-outs are an ideal solution for entrepreneurs facing ownership succession issues or companies with multiple owners looking for liquidity. BOC has to date made several of such investments, highlighted by its acquisitions of AVG, Bochemie and ETA/Plastkov.
BOC invests money either as part of a buy-out or, potentially, alongside a company’s current ownership in order to fund acquisitions, organic growth strategies or both. Growth equity is designed specifically to help push a business through a barrier limiting its potential by providing both the capital and the necessary strategic expertise. Candidates for growth equity investments are typically at an earlier stage of development, with strong technical talent but without the financial strength or management expertise necessary to grow their business. In such situations, we are significantly more interested in the company’s potential than its current state.
As with our buy-out investments, we target majority stakes in each company though with earlier stage businesses, a minority stake may be more appropriate. BOC completed a growth equity transaction in December 2008, with its investment into Grapo Technologies.