Long-term investor in the manufacturing industry
The Dutch manufacturing industry is doing well; the majority of Dutch manufacturing companies have been showing good growth figures for years. At the same time, the average manufacturing company faces quite a lot of challenges. These include the need for major investments, the demand for digitization and the scarcity of technical staff. It’s no coincidence that there are also concerns about the future viability of many companies. Not every manufacturing company is equally well prepared for the advancing technological developments.
Deeply rooted in the manufacturing industry
At VADO we love innovative, ambitious manufacturing companies and entrepreneurship. From entrepreneurs who, with their feet firmly on the ground and their eyes on the future, deliver value to people and society. VADO helps these companies move forward, not only in the short term, but also in the long term. As a long term investor we like to build a close relationship with the manufacturing companies we invest in.
Watch the video: Anvil, doing business with VADO
Three VADO business clusters in the manufacturing Industry.
Based on our history and this specific DNA, we focus on ambitious manufacturing companies with a heart for technology. Our portfolio of companies consists of three clusters:
- Suppliers Metal & Plastics. These companies develop and produce components and modules for leading OEMs and players in various end markets;
- Machinery and Equipment Manufacturing. These companies produce complex and high-quality systems and products; and
- Specialist companies. With their unique expertise, experience or technology, these companies are able to achieve market leadership in a niche.
Interesting end markets within the manufacturing industry
End markets of our current companies include semicon, medical, analytical, pharma, food, transport, defense and intra-logistics. Companies that serve these or other structurally growing end markets are particularly interesting to us. Some companies are well suited for further healthy growth as a stand-alone company. Other companies lend themselves better to a combination with one of the companies with which together they can form a stronger whole, making them a stronger partner for clients.
A good example of this within our own portfolio is Anvil Industries, a strong alliance of mechanical processing companies. The companies within Anvil operate independently and reinforce each other where possible. The larger scale helps to market the specials on a larger scale. By acting as a group you create trust with large parties (like ASML and Philips) and with banks.
Why choose VADO as an investor?
From our practical background we understand the responsibility you have as a company for employees, suppliers and customers. Also, from our own history, we have a natural connection with the (manufacturing) industry and passion for entrepreneurship. Our people have experience in and knowledge of this sector and can easily identify with the typical opportunities and issues of a manufacturing company.
We offer companies the space and support to do business, by sparring with them, by thinking about their strategy, and with targeted investments in R&D or production resources. The expansion of a company through acquisitions also occurs regularly, for example, by implementing a buy & build strategy.
Working on long-term growth in the manufacturing industry
As an investor we apply a long-term strategy; we look at how a company can continue to grow healthily in the longer term. We do not go purely for short-term profits. Often investors use a time horizon of 5 to 7 years. At VADO it’s different. We, as a long term investor, have an open horizon. We prefer a long-term relationship, based on trust and mutual respect, and work together on solid sustainable growth.
Before a possible company acquisition, we take extensive time to get to know each other and to examine to what extent we fit together. To what extent do our vision and core values match? What are the ambitions of the DGA after the takeover? We take the next step only when both parties have a good feeling about the business transfer.
Want to know more about the way VADO works? Get in touch with us!
Do you want to know more about the possibilities we offer around selling your business and the investments we make in the manufacturing industry? Please feel free to contact us for more information.
"We prefer to invest in manufacturing companies because they contribute to a healthy economy, by creating jobs and through their innovative character. Each member of our investment team has extensive experience in the manufacturing industry. Consequently, we can be a good sparring partner for the management of the company on all aspects of the business, from the numbers to our people and beyond. This is how we build the future of our companies, together."