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Green Park Partners Ltd
Green Park Partners Ltd

Green Park Partners

Principal Investor

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Investment Strategy
Green Park Partners target situations where corporate owners are seeking to divest non-core or orphaned businesses but are unable or unwilling to exit through a formal sale process.

Such businesses may have low or negative profitability, low strategic value or may be situations where owners have certain preferences in terms of e.g. timing, carve-out structure or going-concern requirements.

We in particularly target businesses that require re-vitalisation through strategic and operational improvements.

Value Creation
  • Acquire majority holding in medium-sized companies in transition or special situations.
  • Hands-on involvement: (i) focusing business for operational efficiency, (ii) modifying business model for growth.
  • Aim to stabilise a business and ensure a path to long-term growth.
  • Classic opportunistic exit approach or buy-and-build/hold strategy.
  • We act in the role of lead principal and partner with co-investors particularly on larger transactions.

Investment Criteria

  • Solid fundamentals:
    – Established position in stable industries with limited market cyclicality.
    – Offer product and/or services that meet market needs.
    – Industries with barriers to entry reducing risk of change in competition.
  • Performing below industry averages in terms of profitability and recent growth:
    – Typically neglected business – i.e. lacked “commitment and focus” from owner.
    – Has made strategic mistakes.
    – Lack of appropriate changes in company’s organisation and structure (excess costs and lack of focus).
    – Failure to adapt business model to industry and market changes (under investment).
  • Opportunity to improve:
    – Companies where value can be created through GPP’s strategic, financial and operational engagement.
Target Characteristics
  • Revenues between €50m – €500m
  • Earnings positive, negative or break even
  • Located in Europe
  • Some aspect of transaction complexity
  • Motivated vendor

Transition Situations
Companies That Require New Ownership
Our focus is on companies that have become “stuck” and need to “transition” to ensure future profitability and growth.

Where ownership change is required to enable the company: (i) to become focused – to ensure business issues are addressed and restructured to improve operational efficiency; and (ii) to be repositioned – to ensure business model is modified to reposition the company in its market and industry for future growth opportunities.

Without new ownership, non-core businesses risk becoming a financial and strategic burden to the corporate owner.

Where Traditional Buyer Interest Is Low
GPP focus on corporate divestments that where interest from traditional buyers is low.

Strategic and financial buyers typically have very specific criteria for acquisitions – and many situations will fall outside their “comfort zone”.

  • Strategic buyers – Seek strong strategic fit and often good profitability.
  • Financial buyers – Seek strong growth prospects, 25% IRRs and limited risk.
Corporate Divestments
Corporate Divestments / Non-core Businesses – Business area that was once a core interest, but where circumstances have since changed and where the business is no longer part of the corporate’s long-term strategy.

Market requirements may have changed and demand for the company’s products and services may have declined or growth prospects may no longer meet corporate group targets. Or corporate strategy may have changed and other activities have become the focus of the group’s time and resources.

Companies once part of the core strategy … become “non-core”.

Natural Part Of Corporate Evolution
  • Most corporates operate in several business areas – separated by e.g. product type, target market or geography.
  • Corporate strategy evolves over time – a business once “core” becomes “non-core”.
  • The non-core business becomes a distraction and owner is reluctant to invest further time and resources.
  • Divestments are a natural part of corporate evolution.
Non-Core Situations
  • Not a Fit Anymore
  • – Business no longer fit the group’s core strategy.
    – Business operates in a market where growth is low, flat or negative – doesn’t meet growth expectations.
    – Business is underperforming – doesn’t meet group performance targets.

  • In Transition
  • – Company has significant liabilities and/or is exposed to substantial future risks.
    – Company needs balance sheet and/or operational restructuring – carries risk and costs.

  • A Distraction
  • – Corporate is reluctant to invest further time and resources.
    – Corporate reluctant to implement measures which could have an adverse effect on core business.

Corporate Wants to Sell
  • Group management needs to demonstrate to shareholders that it is in control and able to focus and develop the group.
  • Some assets are difficult to sell through a traditional auction process and to traditional strategic and financial buyers.
  • Assets that a corporate is unable to sell become a financial burden and a risk.
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