Focus Areas

The automotive industry is facing a radical shake-up across the board, whether in terms of far-reaching technological developments (CO2 debate, future drive technologies, e-mobility, etc.), a change in consumer attitudes (functionality versus image, environmental protection, etc.) or a shift in the balance of power within the industry (advent of new competitors from other fields, increasing independence from individual strategic suppliers, etc.). Car manufacturers and their suppliers are also struggling with declining revenues and over-capacities amid global competition. Uncertain trends in energy prices and increasing pressure to consolidate, causing a shift in the structure of the sector, as well as the advent of new competitors from developing countries, are shaping the future scenario of a much-changed automotive and supply industry.

Every company operating in today's automotive sector must take a critical look at its own role in this new market. The radical market shake-up requires an ability to look beyond the familiar confines of the industry. This is based on the capacity to develop, expand and manage new and existing business models, as well as to shape creative potential and adequate resources in line with entrepreneurial demands. In particular, securing adequate financial resources in the short term is currently at the forefront of any entrepreneurial decision.

A balance has to be struck between long-term strategic measures and short-term steps designed to secure the existence of the company, in order to enable future challenges to be tackled head-on.

Such changes in the strategic environment require that managers in particular, but also supervisory boards, establish foundations that are in keeping with the prevailing market conditions. Key skills are increasingly manifested in change-management abilities. Personalities capable of developing and implementing innovative strategies and guaranteeing sustained international networking will increasingly make the crucial difference.

Liebe • Sutor • Gawlowski supports you in approaching and placing these personalities, focussing on operations as well as production, purchasing, logistics and development in its project work. Strategy, organisation, and sales and marketing are also becoming increasingly important areas, however.

The Automotive & Industry team advises companies on filling vacant managerial positions at levels 1 to 3, as well as strategically significant specialist positions and staff department vacancies.

The focus is on technical and commercial management tasks, divisional management and departmental management. Our customers include well-known medium-sized companies, automobile manufacturers and owner-managed companies. The focus is on manufacturers and suppliers to the automotive industry.

German and international consumers are re-evaluating their priorities – one-dimensional decisions to purchase solely on the basis of price are proving less and less effective. Although a low price level still constitutes an important criterion, it is losing its dominant status. Attributes such as quality and performance are increasingly taking centre stage and manifesting sustainable differentiation criteria.

This development is providing brand manufacturers and retailers with new strategic and tactical options. Even in the wake of this turnaround, trade and industry are still facing major challenges. However, their traditional strengths such as customer orientation and brand leadership make them well equipped to meet these. If they continue to invest in operative excellence, they will have a very strong hand indeed. Global sourcing, supply chain management, lean retailing, sales and distribution are particularly noteworthy areas in this context.

Discerning consumers, demographic change, stiff competition, high cost pressure and short product life cycles are among the industry accelerators in our eyes.

A balance must be struck between long-term strategic measures and short-term measures designed to secure the existence of the company, in order to enable future challenges to be tackled head-on.
Such changes in the strategic environment require that managers in particular, but also supervisory boards, maintain a basis that focuses on what are fundamental strategies in this situation.

Liebe • Sutor • Gawlowski supports you in approaching and placing these personalities.

The Consumer Goods & Trade team advises companies on filling vacant managerial positions at levels 1 to 3, as well as strategically significant specialist positions and staff department vacancies.

The focus is on technical and commercial management tasks, divisional and departmental management. Our clients include well-known German small and medium-sized enterprises, as well as owner-managed businesses.

Private equity companies, having raised the necessary funds, face the challenge of investing their capital profitably. The market is becoming increasingly competitive, partly because international investors are joining the fray. Investment strategies frequently focus on the “hidden champions” among Germany's small and medium-sized enterprises.

In the case of growth financing in suitable target companies, the investment strategy of private equity companies is characterised by a favourable risk/return ratio. The target company should also boast a stable cash flow and/or appropriate EBITDA figures.

PE transactions often take the form of a leveraged buy-out (LBO) – this means that the investment has been made largely on the strength of borrowed capital. The aim is to generate as high a return as possible on the invested equity capital. Increasing the equity return is described as the leverage effect. It depends on total profitability being higher than interest on the borrowed capital. Management buy-outs (MBOs) are relatively common, but result in a number of operative challenges that have to be overcome.

Challenges to private equity companies:

Origination

The biggest challenge faced by a private equity company is to identify the right targets. Compatibility with the above-mentioned value drivers (EBITDA, cash flow and risk/return ratio) is important, but the target must also match the individual investment strategy, which is often geared to sales levels, sectors and the existing network. Proprietary deals are generally sought, as the purchase price in such cases is often commensurate with expected performance. Considerable networking is required if this strategy is to succeed.

Management access

Once a potential target has been identified, the next question is often “How can I make an initial, discreet approach to the company / its shareholders?” This fundamental issue can make or break a deal. Communication is key.

Due diligence

Due diligence is essential if the potential of a target is to be assessed accurately. This is a virtually impossible task unless the right industry experts from the same sector as the target are involved. However, it is also a good idea to bring in experts from the respective sales markets, as they are familiar with customer requirements and can provide referenced access to potential contacts. Here, too, intensive networking is also indispensable.

Management / supervisory board

The purchase and future development of the company stands and falls with the management and supervisory board. Management constitutes the link between the financial investor and the business operations of the portfolio company. A detailed selection process is imperative with a view to minimising the risk.

LSG & Kollegen GmbH has geared its services to tackling the raft of extremely demanding challenges that face private equity companies. We provide our private equity clients with exclusive networking; among other things, we pledge to contact the right people in the right sectors at all the right stages of the process. We work closely with our clients to define potential sectors, sub-sectors and target companies.

The electronics industry generates more innovations around the globe than almost any other sector. As one of the most important drivers for markets of the future, it is of vital importance to virtually all areas of society.

The electronics industry can (and must) supply crucial solutions to key 21st-century challenges in fields such as automotive electronics (e-mobility, automated driving, ever more complex driver assistance systems) and industrial electronics (Industry 4.0), as well as in the course of the energy revolution, where smart grids (intelligent electricity grids) will be required to network communications between power generation, storage and consumption.

The vital role played by electrical engineering becomes even more evident when viewed from a global perspective: the growing world population, ever scarcer resources and the consequences of climate change are just some of the issues that highlight the need for new technologies. The electronics industry can make a decisive contribution to the all-electric society with solutions such as resource-conserving technologies, smart homes and smart cities.

As a driver for innovation and growth, electrical engineering will not only have a key economic role to play, but will also have a big say in shaping trends such as the Internet of Things and implementing pioneering technologies (intelligent machines, smart factories, secure IT infrastructure) for manufacturing industry as a whole in an ever more intensive interdisciplinary exchange between fields such as electronics, IT and automation.

Germany is now a world innovation leader in important key and cross-sectional technologies. That said, small and medium-sized enterprises operate in a globally highly competitive, transient market with extremely short product cycles.

In order to prosper in this competitive environment, companies are above all looking to deliver high product quality, increasingly strong customer orientation, and continuous product developments and process optimizations alike. Their goal is to maintain and develop the strengths of the German electronics industry – its high pace of innovation, as well as its adaptability and willingness to change.

An inevitable consequence of this, however, is a continuous increase in the demands made of both employees and management. Company management and employees expect the pace of change and competitive pressure to intensify still further.

One of the central challenges to be faced by companies looking to ensure global competitiveness in the longer term is the recruitment of outstanding specialists and executives. This is all the more vital since two-thirds of SMEs cite problems in finding sufficiently qualified staff.

Liebe • Sutor • Gawlowski supports you in approaching and placing these personalities.

The Electronics team advises companies on filling vacant managerial positions at levels 1 to 3, as well as strategically significant specialist positions and staff department vacancies.

The focus is on technical and commercial management tasks, divisional and departmental management. Our clients include well-known German small and medium-sized enterprises, as well as owner-managed businesses.