As first reported by Private Equity News, Mutares, the German private-equity firm, has set ambitious targets for the future, aiming to double its current revenue and net profit by 2028.

This is part of the company’s medium-term strategy, which has been bolstered by recent moves to expand its portfolio and geographical footprint.

The company’s goal is to achieve revenue of €10bn and net profit of €200m by 2028. Mutares plans to achieve this by expanding into new markets, such as China and the USA, which the company believes will provide attractive growth opportunities.

The company’s recent acquisition of Sofinter is expected to provide significant synergies in NEM Energy Group, further boosting its growth prospects.

Mutares’ ambitious growth targets have been met with enthusiasm by investors, with the company’s stock price rising in response to the news.

The company’s strategy of broadening its portfolio and expanding its geographical footprint, combined with its focus on operational improvements, is seen as a winning formula for success.

As Mutares continues to execute on its growth strategy, it will be interesting to see how the company performs in the years ahead.

Mutares’ Bold Ambition

Photo by Philipp Bachhuber

Mutares, the German private-equity firm, has set its sights high with a bold ambition to nearly double its current revenue and net profit by 2028. The company’s medium-term strategy aims to achieve revenue of €10bn and net profit of €200m by 2028, following recent moves to expand its portfolio and geographical footprint.

This ambitious target is not without its challenges, but Mutares is confident in its ability to achieve it. The company’s expansion into China and the USA has opened up new and attractive growth opportunities, which it plans to take full advantage of.

To achieve its goal, Mutares plans to continuously expand the average size of the portfolio held, with a medium-term target of at least €2bn in annualised consolidated revenue. The company has also reaffirmed its commitment to an attractive dividend policy.

Mutares’ bold ambition is a testament to its confidence in its ability to grow and succeed in the competitive world of private equity. With a clear strategy and a determined team behind it, the company is well on its way to achieving its ambitious goals.

The Strategy Behind the Goal

Mutares’ ambitious goal to double its revenue and net profit by 2028 is not just a pipe dream. The private equity firm has a solid strategy in place to achieve this target. In this section, we will take a closer look at the key elements of Mutares’ strategy.

Acquisitions and Exits

Mutares has been actively acquiring companies with high potential for growth and profitability. The private equity firm has a proven track record of identifying undervalued assets and turning them around. In recent years, Mutares has broadened its portfolio by acquiring companies in various sectors, including automotive, engineering, and consumer goods.

At the same time, Mutares has been divesting non-core assets to focus on its core competencies. The firm has been able to generate significant returns on its investments by exiting companies at the right time.

Optimization and Restructuring

Once Mutares acquires a company, it focuses on optimizing the operations and improving profitability. The private equity firm has a team of experts who specialize in operational and financial restructuring. They work closely with the management of the acquired companies to identify areas for improvement and implement changes.

Mutares’ expertise in restructuring has enabled it to turn around struggling companies and transform them into profitable enterprises.

Geographical Expansion

Mutares has been expanding its geographical footprint beyond Europe. The private equity firm has identified China and the US as attractive markets for growth. Mutares has already made significant investments in these countries and plans to continue expanding its presence.

In addition to China and the US, Mutares is also looking to expand its operations in other European countries. The firm sees significant potential for growth in Eastern Europe and plans to invest in companies in this region.

Mutares’ strategy of acquisitions, exits, optimization, restructuring, and geographical expansion is well thought out and has already yielded positive results. If the private equity firm continues to execute this strategy successfully, it is well on its way to achieving its goal of doubling its revenue and net profit by 2028.

The Financial Implications

Revenue Projections

Mutares’ recent steps to broaden its portfolio and expand its geographical footprint have led the company to set ambitious revenue targets. The private equity firm aims to nearly double its current revenue by 2028, with a growth target of €10 billion in consolidated revenues planned.

The company’s revenue projections are based on its recent acquisitions, which have helped to diversify its portfolio and expand its reach. Mutares has also been investing in its existing portfolio companies to help drive growth and increase profitability.

Investments and Dividends

To achieve its revenue targets, Mutares plans to continue making strategic investments in companies that align with its portfolio. The company has recently expanded into China and plans to open an office in the US next year.

Despite its growth plans, Mutares has also committed to paying out annual dividends to its shareholders. In 2022, Mutares Holding’s net income rose to a record level of €72.9 million, and the company is expected to continue to grow strongly in 2023. Mutares Holding’s revenues from consulting services and management fees also increased to €71.1 million in 2022, up from €50.5 million the previous year.

Mutares’ group EBITDA for 2022 was €161.5 million, up from €132.5 million in 2021. The company’s adjusted EBITDA for 2022 was €122.4 million, up from €102.3 million in 2021. These figures demonstrate Mutares’ strong financial performance and its ability to generate significant portfolio income.

Overall, Mutares’ revenue projections, investments, and commitment to paying dividends demonstrate the company’s confidence in its growth prospects and its ability to generate significant returns for its shareholders.