One of the most compelling investment opportunities in decades is currently unfolding, yet it remains overlooked and underappreciated by far too many investors. The baby boomers are retiring, and the long-forecast wave of European family businesses seeking a generational transfer of ownership has finally arrived. Europe’s succession crisis is real, substantial, and immediate. It presents a profound challenge for business owners, local communities, and the European economy. And it creates a major opportunity for private capital.
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Petr Rojicek
The choice facing investors is simple: position for Europe’s generational transfer of ownership or risk being a spectator to one of the defining investment opportunities of the decade.
Key Takeaways
- An unprecedented wave of companies are seeking succession financing at a time where there are more sellers than qualified buyers. This buyer’s market is already driving heavy discounts and enabling acquisitions at attractive prices.
- Europe’s succession crisis presents a unique environment for fund managers to execute buy-and-build strategies, with a plentiful supply of high-quality companies in fragmented industries available at attractive prices.
- The succession landscape is ripe for consolidation, and this is only the very beginning. There will be many more regional and even pan-European roll-up stories in the years ahead.
- Ownership transitions are complex. Successful investment requires far more than capital alone. Getting the transition right the first time is critical, making GP selection absolutely critical to success.
- When it comes to the succession opportunity, manager selection matters more than thematic exposure, and this is where a multi-manager approach can add material value for an investor.
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