Bastion Participaties participates in:
Companies that look to finance an expansion or takeover
Companies that look to set up new activities
Autonomization out of bigger concerns
Business successions
Takeover of existing share packages
Companies that find themselves in a turn-around phase
Knowing what you do, and especially what you do not do, characterizes an entrepreneur’s strategy. This is the case for Bastion Participaties as well. Bastion Participaties will initially not invest in starting companies. The direct target group is consists of Dutch companies with a turnover between €1.5 million and €20 million, of which longer existing companies or companies that operate in a growing market, or that have demonstrable cost or market advantages, have our preference.
Bastion Participaties aims for a size per shareholding of €0.5 million to €2.5 million. In cooperation with one or more shareholders associated with Bastion Participaties or in a syndicate with other financial parties, bigger shares are also within our limits.
Regarding young and fast growing companies, the transaction will be realized by issuing new stocks, possibly in combination with subordinated, convertible or other equity linked loans. With regard to longer existing companies, a takeover of existing share packages is also one of the possibilities.
The shareholding will be established for a period of five to seven years. At the beginning there needs to be an agreement in broad lines about the exit.
Market analyses, due diligence investigations and contracts will be realized by external consultants with decent knowledge and experience in the concerning field.
Per share a (limited) annual cash flow is aimed for in the form of dividend, interest or repayment.
Forms of Financing
A private equity firm is not a bank. There is a fundamental difference between a banking financer’s relationship with an entrepreneur and a private equity firm’s relationship with an entrepreneur. A bank finances, as a rule, on the basis of certainties, while a private equity firm makes a contribution to future financing that brings a piece of uncertainty by definition. Therefore we provide risk capital.
The method of financing is dependent of the circumstances. Many occurring forms are:
- Financing in share capital;
- Input of premium;
- Subordinated loan;
- Convertible subordinated loan.
These financing methods are mostly applied in combination with each other.
Financing in Share Capital
Our involvement in a company goes together with the recruitment of a (minority) interest through the purchase of existing or new shares. This way the balance sheet position can be improved, by which a possibility of an additional financing by the bank is increased.
Input of Premium
When the financial position gives a reason for it, we put in more equity capital than the total value of the shares. This extra discount is beneficial to the share premium and increases the equity capital of the company.
Subordinated Loan
Subordination means that the bank and trade payables have a priority in case of debt rescheduling or bankruptcy. Banks consider a subordinated loan a guaranteed equity, comparable with equity capital, and they also see it as a basis for additional banking credit.
Convertable Subortinated Loan
This is a subordinated loan that can be converted to stocks in the long term. In many cases at accession, the value of the shares of small or young companies is so low that the financial position is still not good enough after buying said shares. In that case, we provide a convertible, subordinated loan, which in the long term can be converted partially or completely in equity interest.
