Forum Family Equity prefers to invest in subscription businesses, i.e. businesses with recurring revenues - this is what the waterfall stands for. Such revenues can stem from maintenance/spare parts/consumables for physical products, maintenance contracts/SaaS revenues for software, and generally high criticality/high switching risk of the service provided - in any case they create high customer loyalty. This gives subscription businesses very high visibility for revenue and earnings in the long time frames in which we think. Moreover, subscription businesses are usually very profitable and of great value for succession planning in family businesses.
Industries: Preferably software, water & fluid management, healthcare. In addition, we are always open to other niche businesses with a high proportion of recurring revenues.
Type of investment: equity only
Participation rate: only majorities, mostly 100%
Company size: for so-called platform deals - which report directly to FORUM - turnover at least € 5 million or EBIT at least € 1 million No minimum thresholds for so-called "add-ons" for our holdings
Transaction value: € 5-50 million
Within the framework of the search profile described above, FORUM is flexible with regard to the shareholder and succession situation. In the following we have presented typical case constellations together with possible solutions.
"Satisfied customers are a start, in the end we have to turn customers into fans."