011_DBAG GB 2000 Innen E - Deutsche Beteiligungs AG
011_DBAG GB 2000 Innen E - Deutsche Beteiligungs AG
011_DBAG GB 2000 Innen E - Deutsche Beteiligungs AG
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Management’s report<br />
Management’s Management’s report report<br />
Management’s report<br />
Management’s report 69<br />
Risks from the operative side of the business of <strong>Deutsche</strong> <strong>Beteiligungs</strong><br />
<strong>AG</strong> play a subordinate role in view of the relatively low number of transactions<br />
and employees and the involvement of several employees when<br />
transacting larger deals.<br />
IV. 2.3. Focus on profitable realizations<br />
A key factor for success in our business is the realization of capital gains.<br />
Even prior to making an acquisition, we intensively investigate ways to<br />
profitably exit that investment again, following a period of enhancing<br />
the portfolio company's value. We regularly look into several exit options<br />
in order to have alternatives at hand. Moreover, we work on a number<br />
of exits simultaneously during the course of a financial year. That reduces<br />
the risk of depending too greatly on a single realization. Nevertheless,<br />
our realizations are subject to certain deadline problems related to the<br />
year-end closing date. We need to accept that complex transactions may<br />
not always be completed in a financial year as planned, even though the<br />
value created may be attributable to that year. We principally will not<br />
invest in a portfolio company, if we do not recognize realistic exit opportunities<br />
in the mid-term.<br />
IV. 2.4. Identifying new investment opportunities<br />
To ensure a steady stream of new investment opportunities, <strong>Deutsche</strong><br />
<strong>Beteiligungs</strong> <strong>AG</strong> has access to a large national and international network<br />
of contacts to enterprises, investment banks, auditors, attorneys, etc.<br />
We naturally also benefit from our position as the private equity partner<br />
to <strong>Deutsche</strong> Bank.<br />
The portfolio strategy, with its focus on majority acquisitions of larger<br />
companies and our earnings expectations, is supportive of the Company's<br />
selectivity in its acquisition policy. Fluctuations in the number of new<br />
investments when comparing specific periods are therefore normal in our<br />
line of business and reflect the rigid standards we apply in profitable<br />
investments.
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