HANNOVER Finanz investment principles

Target groups

  • Successful, growing businesses, preferably turning over at least € 20 million
  • Widely spread over the manufacturing, trading and service industries

Selection criteria

  • Competent management, good market position, good earnings prospects
  • Clearly organized accounts
  • No turn-arounds, no start-ups

Reasons for investment

  • Funding growth and expansion
  • Corporate succession through MBO / MBI, outright sale or owner buy-out
  • Spin-offs / Carve-outs
  • Change of ownership / OBO
  • Balance sheet restructuring / Special situations
  • Preparation for going public

Form / duration of investment

  • Capital increase and/or purchase of shares
  • Optionally in combination with dormitory partnership or shareholder’s loan
  • Medium to long-term commitment – 8 to 10 years on average

Size of investment

  • Minority holdings (10% to 49%)
  • Majority holdings, usually in the case of buy-out funding
  • € 3 million to € 50 million per individual project
  • Transaction values of up to € 150 million in structured finance schemes

HANNOVER Finanz procedure

Usually, three to six months will elapse from first contact to the finalizing of an investment. Before the HANNOVER Finanz Group enters into a commitment the following steps are taken:

Preliminary investigation

  • Preliminary analysis of all available information on the company
  • Review of studies on the market and competition

Initial interview

  • Getting to know the individuals involved
  • Familiarization with the company
  • Presentation of the HANNOVER Finanz Group
  • Exchange of further documentation
  • Agreement on further procedure

Detailed review

  • Analysis of annual statements
  • Plausibility check on corporate planning
  • Valuation of company
  • Compilation of an investment concept and the offer

Board consent and approvals

  • Drafting of a resolution
  • Consent by the executive board of HANNOVER  Finanz GmbH
  • Consent by the investors’ committees of the HANNOVER Finanz funds
  • Approval by the cartel authority
  • The executive board is empowered to approve investments of up to approx. € 5 million on its own authority


  • Sale and acceptance agreement
  • Articles of association
  • Additional contracts such as loan and arbitration agreements, leases and directors’ contracts
  • Anti-trust proceedings, if necessary