Target Information

Fritz Dethlefsen, the owner of Braase Spedition & Logistik, began his journey with the company by acquiring it in 2006 through a management buy-in. Established in 1971 and located in Fockbek, Schleswig-Holstein, Braase specializes in transporting large-volume leisure and utility vehicles. The firm provides comprehensive services, including customer and transport management with its own fleet, vehicle warehousing, and logistics for the production of vehicles at the nearby Hobby-Wohnwagenwerk.

Dethlefsen, now in his early 60s, proactively addressed the company's succession planning as he recognized the importance of a smooth transition. He had begun grooming Dirk Zernitz, a trusted colleague of nearly 30 years, as his potential successor. Since 2008, Zernitz has jointly managed the company alongside Dethlefsen, overseeing day-to-day operations while Dethlefsen focused on finance and controlling.

Industry Overview

The German small and medium-sized enterprises (SME) sector plays a critical role in the national economy, with around 30,000 companies faced with succession planning each year, according to the Institute for SME Research Bonn (IfM Bonn). This situation is particularly pressing as approximately half of these businesses find that family members are unwilling or unable to take over leadership roles.

This scenario has prompted a growing trend of management buyouts and management buy-ins within the sector, allowing for the continuity of businesses through external leadership. As companies seek to maintain their legacy, specialized M&A advisors are increasingly engaged to facilitate successful transitions.

The market for logistics in Germany encompasses a wide range of services, focusing on efficiency and innovation to meet the needs of diverse industries. Companies like Braase capitalize on niche markets, offering specialized solutions tailored to specific customer demands, such as the transportation of recreational vehicles.

As the logistics industry evolves, companies are leveraging digital technologies and data-driven strategies to enhance operational efficiency and customer satisfaction. This trend is vital for SMEs seeking to remain competitive in an increasingly dynamic market.

Rationale Behind the Deal

The primary objective of Fritz Dethlefsen in pursuing this succession plan was to ensure the longevity and stability of Braase Spedition & Logistik. After recognizing the complexities associated with ownership transitions, he sought the expertise of Sonntag Corporate Finance to facilitate the process.

By partnering with Haspa BGM Beteiligungsgesellschaft für den Mittelstand, a private equity investor focused on SMEs in Northern Germany, Dethlefsen aimed to maintain a robust financial structure while securing expertise to guide Braase through future growth. The deal resulted in Dethlefsen selling 65% of his shares while retaining a 35% stake in the company.

Information About the Investor

The Haspa BGM Beteiligungsgesellschaft has established itself as a crucial player in the investment landscape for small and medium-sized enterprises in Northern Germany. Targeting minority stakes ranging from 25% to 49.9%, Haspa BGM focuses on companies with revenues between €10 million and €300 million.

Carsten Röhrs, managing director of Haspa BGM, emphasized the importance of a strong equity base and sustainable financial structures in the company's approach to succession deals. With a portfolio comprising companies that have benefitted from partnerships lasting over a decade, Haspa BGM is committed to fostering long-term growth and stability in the businesses they invest in.

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From an investment perspective, the acquisition of a significant stake in Braase Spedition & Logistik represents a promising opportunity, particularly given the company's specialization in a niche market that exhibits strong growth potential. Combining Dethlefsen's industry knowledge with Zernitz's operational expertise positions the company well for future success.

The strategic focus of Haspa BGM on long-term involvement aligns with the needs of SMEs undergoing ownership transitions, offering necessary resources and guidance while allowing for continued family engagement. Additionally, the investment's structure fosters stability, minimizing disruption during the transitional phase.

Furthermore, the logistics sector in Germany continues to evolve towards digitalization and process optimization, which bodes well for companies adapting to these changes, like Braase. The integration of innovative practices positions Braase to enhance its service offerings and operational efficiencies, reinforcing its competitive edge.

Overall, this deal demonstrates a well-considered approach to succession planning that prioritizes continuity and strategic investment, making it a potentially strong investment opportunity for Haspa BGM, alongside the existing management team.

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