M&A and Transactions

BOOSTING COMPETITIVENESS THROUGH M&A

Challenges

COMPETENCIES, MARKETS, CUSTOMERS

Mergers, acquisitions and strategic partnerships can be powerful enablers in gaining new skills and competencies, accessing new markets and customers, or simply building scale. They help companies remain competitive or transform their business in the face of coming change.  

Transactions are highly complex processes, whether equity or non-equity based. Managing them is a task that calls for professional help. With a track record of over 250 mobility transactions globally, Berylls has helped many automotive companies build new strategic partnerships, attract new investors or buyers, and identify suitable target companies. 

Berylls serves all investors, strategic and financial. But we go beyond advisory. We have skin in the game. We act as entrepreneurs and invest our own money through Berylls Equity Partners and Berylls Digital Ventures. So we know M&A – but Different.

Customer segments

THE TRUSTED CLIENT ADVISOR

M&A transactions are among the most meaningful business decisions in a company or shareholder’s life. It isn’t only the huge amount of money that is at stake. M&A and networks have a personal impact on all stakeholders. Therefore, trust and reliability are of utmost importance to us.

Berylls understands the implications of M&A decisions for all parties. With our long track record of successful transactions, we support all stakeholders in different situations: from family shareholders to professional financial investors, from large corporates to start-ups, as well as family offices, insolvency administrators, investment banks, M&A advisors, mobility executives and boards.

FAMILY SHAREHOLDERS

We know it is about more than just business. It is the next chapter in our client’s family history. It is about the preservation of what you and your family have built up, possibly over generations. We think beyond the transaction, and aim to support people and their achievements.

FAMILY OFFICES

Family office investment is unconstrained. Personal convictions regarding the future of the mobility industry are part of the investment decision, and flexible deal structures can be pursued. Berylls knows that investing as a family office is about empowering companies and business models. We support offices in developing their investment thesis and acting on it, through market insights, target identification and value creation strategies.

CORPORATE ENTERPRISES

In the wake of the multi-crises of recent years, cashflows have come under pressure. Mobility companies have also been required to make significant investments in order to build up in-house competencies and reorganize corporate structures in a time of industry transformation. Berylls understands how M&A, restructuring and network building are required to stay competitive. As industry experts, Berylls supports clients in identifying the right strategic acquisition, deciding which business unit to divest or which partner to approach – and all with the aim of future-proofing the business.

PROFESSIONAL FINANCIAL INVESTORS (PE AND VC)

Automotive investment conditions have worsened. Debt providers are reluctant to support acquisition financing, and interest rates have skyrocketed. But with change and disruption there comes opportunity, for venture capital, for growth equity, for buyouts and distressed investments. Berylls minimizes risks prior to acquisition through in-depth market understanding and detailed ex-ante value creation strategies. We maximize returns through in-depth due diligence, detailed valuations, rigorous implementation, and integration programs.

START-UPS

The recent cycle of economic instability and increasing interest rates has led to a drastically reduced availability of venture capital, pushing some projects to the brink of failure. We understand the need for short-term solutions within long-term strategies. Through Berylls Digital Ventures we support clients in venture capital financing, partnerships and joint ventures. And we believe in having our own skin in the game, working for shared return or investing directly in mobility start-ups.

INSOLVENCY ADMINISTRATORS

The interest in distressed automotive companies is increasing – but automotive asset bases are often eroded, while strained customer relationships and extensive personnel structures inhibit quick turnarounds. Today’s sellers must provide more extensively prepared assets to potential buyers: financing concepts, restructuring measures and value creation strategies. Through Berylls Equity Partners, we invest in distressed mobility companies, preparing sales processes and maximizing value for all stakeholders.

INVESTMENT BANKS AND M&A ADVISORS

The automotive industry is often seen negatively by investors. Setting the right tone in M&A and partnership negotiations is increasingly difficult. Investors do not trust the positive outlook and growth stories presented by the sellers. We understand the importance of well-founded commercial due diligences, strategic outlooks and synergy effect analyses. Berylls aims to build a bridge between pessimistic outside-in sentiment and promising investment opportunities.

FAMILY SHAREHOLDERS

We know it is about more than just business. It is the next chapter in our client’s family history. It is about the preservation of what you and your family have built up, possibly over generations. We think beyond the transaction, and aim to support people and their achievements.

Key figures

CLIENTS WE HAVE SUCCESSFULLY SUPPORTED
279
Number of transactions supported
42%
Deals successfully closed
1000+
Automotive sectors analyzed
61
Strategic investors as clients
84
Financial investors as clients
M&A Advisory Services - Graphic-v2

track record

CLIENTS WE HAVE SUCCESSFULLY SUPPORTED

Joint Venture: Henkel (US) / RLE International (Germany)

M&A parties
Henkel (€20bn sales, 53,000 employees, DAX 30 company for consumer and chemical goods; €2Bn automotive reveneu) and RLE International (€135m sales, 2,300 employees, engineering service provider).

Transaction details
Strategic alliance in the field of lightweight construction, crash simulations, new mobility solutions.

Berylls’ role
Definition of business model for JV.
Specific service offering.
Customer focus.
Organizational model and governance.
Business case.
Evaluation of synergies (revenues and costs) for both parties.
Results achieved
Integration of BEV-battery into vehicles.
Solutions for battery production (including adhesives, thermo-conducting gap-filler, fluid sealants, and surface preparation).

www.henkel.com

Acquisition of Heinrich Huhn (Germany) by Berylls (Germany)

M&A parties
Heinrich Huhn (€80m sales, 400 employees, metal forming automotive supplier of chassis components) sold by insolvency administrator to Berylls Equity Partners (investor in mobility targets).

Transaction details
Acquisition of German “Mittelstand” automotive supplier by specialized distressed asset private equity investor.

Berylls’ role
Investor, implementing operational, financial and strategic restructuring.

Results achieved
Stabilization (financial and operational) of target company and new investments in sales growth. Sales growth to €100m in first year.

www.heinrich-huhn.de

Sale of Hilite (Germany) to AVIC (China)

M&A parties
Hilite (€389m sales, German automotive supplier of powertrain components) sold by shareholder 3i Group (£23bn in assets under management, UK private equity group) to AVIC ($66bn sales, state owned Chinese aviation and defense corporation).

Transaction details
3i Group sold Hilite, a leading global supplier of highly engineered automotive engine and transmission components, to AVIC: the enterprise value of the transaction was €473m, the total proceeds to 3i Group represent a 2.1x multiple on the original investment of €190m within three years.

Berylls’ role
Development of Hilite’s strategy and support of the M&A deal team: detailed commercial due diligence, market trends and drivers, market structure and development, competitive positioning, strategic options and business plan validation.

Results achieved
Growth of 80% in 10 years, now positioned as a global top three supplier for cam phasers and SCR dosing units.

www.avic.com.cn

Acquisition of PREMO (Spain) by sovereign wealth fund Mumtalakat (Bahrain)

M&A parties
PREMO (€44m sales, 1400 employees, automotive supplier of innovative electromagnetic components used for automotive keyless access
systems and electric powertrains) sold by Minerva Capital (Spanish private equity house) to Mumtalakat ($18bn in assets under management, Bahrain sovereign wealth fund).

Transaction details
Take-over of headquarters and innovation center in Malaga, Spain, seven sites globally (Asia), more than 120m parts produced annually, 57 years of experience.

Berylls’ role
Supported M&A deal team: commercial due diligence, business plan assessment.
Results achieved
Developed further solutions within automotive and other industries (including intra-logistics and virtual reality); increasing presence in North American market.

Transaction details
Take-over of headquarters and innovation center in Malaga, Spain, seven sites globally (Asia), more than 120m parts produced annually, 57 years of experience.
Berylls’ role
Supported M&A deal team: commercial due diligence, business plan assessment.

Results achieved
Developed further solutions within automotive and other industries (including intra-logistics and virtual reality); increasing presence in North American market.

www.mumtalakat.bh

Post-Merger Integration of Donghee (South Korea) by Webasto (Germany)

M&A parties
Webasto (€3.7bn sales, automotive supplier of roof systems) acquires operations of Donghee (€352m sales, 1322 employees).

Transaction details
Biggest acquisition in Webasto’s history, taking over 50% of shares of joint venture Webasto-Donghee.

Berylls’ role
Full responsibility for cross-regional project management office and integration of functions in three regions.

Results achieved
Access to key OEMs including Hyundai, KIA and MC. Synergies and optimization of supplier landscape.
Developing strategic platform for other Webasto divisions including battery and charging businesses. Growth to almost €4bn in sales.

www.webasto.com

Sale of Royal Power Solutions (USA) to IGP (USA) and then to Eaton (USA) M&A parties

M&A parties
IGP (Industrial Growth Partner, a $1.2bn private equity fund) acquires Royal Power Solutions ($90m sales in 2017 / $200m in 2022, manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial and mobility markets) and sells to Eaton ($17.9bn sales, 85,000 employees, automotive supplier).

Transaction details
Primary acquisition of family enterprise Royal Die and Stamping. Growth strategy through buy-and-build for four years. Eaton then buys business for over $600m.

Berylls’ role
Commercial due diligence and advisory on growth strategy. Target search and approach for buy-and-build strategy. Vendor due diligence.

Results achieved
Sale of Royal Power Solutions for an EBITDA multiple of 13.6 on future value.

www.eaton.com

Sale of MEKU (Germany) to Hechinger (Germany)

M&A parties
Berylls Group (€62m sales, 200 employees, consulting and PE investments) sells 30% share of MEKU (€50m sales, 200 employees,
high-quality precision stamping parts for automotive electrics) to Hechinger (€170m sales, automotive Tier 2 supplier for magnet systems as well as mechatronic and electronic sub-assemblies).

Transaction details
Joint acquisition of MEKU by Hechinger and Berylls. Sale of MEKU to Hechinger after holding period of two years for a 2.8x multiple.

Berylls’ role
Acquisition process with insolvency administrator. Financial, operational and strategic restructuring including new governance. Installation of new management and sales strategy. Relocation of production operations to Eastern Europe.

Results achieved
Turnaround and stabilization of profitability in first year. Strong growth with highest sales and new bookings in company history.

www.meku.de

Team

OUR M&A AND TRANSACTION EXPERTS

Executive Partner

Dr. Jan Dannenberg

As a management consultant, I am driven by curiosity, the permanent urge to learn and applying experience to my customers.

Executive Partner

Andreas Radics

Those who are willing to invest their own money in a distressed case do not take on a project assignment, but responsibility for the overall result - another point that makes Berylls "but different"!

Executive Partner

Andreas Rauh

Berylls stands for passion for automobility and the ambition to shape the future of the automobility industry.

Partner & MD (KOR)

Michael Bang

Working at Berylls means to work with the best industry experts and always have to explore most important and latest topics in automotive industry. Berylls creates unparalleled impacts on clients from its focus on automobility.

Partner

Dr. Matthias Kempf

The Berylls difference is a combination of things: working at the absolute spearhead of industry transformation in teams that are absolute experts in their field, and doing so in a family environment that demands a lot, but also offers a lot of freed…

Associate Partner & MD (CH)

Dr. Oliver Weis

Unique people, great projects, true passion.

Associate Partner

Dr. Jürgen Simon

Working at BSA means working with the customer and excellent colleagues at eye level on the challenges that move the industry. There is always time to live the excellent team spirit!

Project Manager

Stefan Schneeberger

Innovative business models, disruptive technologies, and new market entrants are radically changing the structure of the automotive industry. What could be more fascinating than being part of this journey with the highly motivated team at Berylls?
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