Value creation

through private equity investments

in Swiss and European SMEs

About Us

K2 Equity specializes in private equity investments that build long-term value and expand potential of Swiss and European SMEs in the industrial sector through accelerated growth and consolidation. We value simplicity, integrity, and the power of ownership.

Our investment approach is to fully acquire SMEs having a proven track record of stable cash flow, with the aim of consolidating fragmented industrial sectors. We are committed to fostering continuous growth, preserving existing knowledge, and seeking new opportunities for expansion.

Our end goal is to generate long-term, above-average returns through a low-risk investment strategy.

About Us

K2 Equity specializes in private equity investments that build long-term value and expand potential of Swiss and European SMEs in the industrial sector through accelerated growth and consolidation. We value simplicity, integrity, and the power of ownership.

Our investment approach is to fully acquire SMEs having a proven track record of stable cash flow, with the aim of consolidating fragmented industrial sectors. We are committed to fostering continuous growth, preserving existing knowledge, and seeking new opportunities for expansion.

Our end goal is to generate long-term, above-average returns through a low-risk investment strategy.

“If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes”

                                                   Warren Buffet

Investment criteria

Industrial sector in Switzerland & Europe

Fragmented sector with little to no consolidation 

Proven stable cash flow for  > 5 years

B2B sector with pricing power

Non-cyclical industry with low customer concentration

Valuation between $5-$20MM with EBITDA multiple of 3x-6x

Target Return

> 25%

Target Return

>  25%

Investment criteria

Industrial sector in Switzerland & Europe

Fragmented sector with little to no consolidation 

Proven stable cash flow for  > 5 years

B2B sector with pricing power

Non-cyclical industry with low customer concentration

Valuation between $5-$20MM with EBITDA multiple of 3x-6x

Target Return

> 25%

Target Return

>  25%

Our Approach

ACQUISITION:

We aim to acquire between 50% and 100% of the business with a 60% to 80% leverage. We will assume management responsibility and ensure smooth transition by leveraging the continuity of the team and the knowledge of the previous owner for the transition period.

GROWTH ACCELERATION:

Building on the continuity of the business and the experience of the existing team, we will aim to drive the growth in the following way:

1. Implement a vision & strategy translated in very simple KPIs shared with the team to drive us all towards the same goal

2. Open new sources of revenue and introduce comprehensive sales & marketing processes

3. Accelerate & simplify the internal and external processes and introduce digitalization

4. Put in place efficiency, costs & working capital programs to free funds for commercial investments.

CONSOLIDATION:

If the business sector is fragmented and we demonstrate that our growth strategy is successful, then we accelerate the value creation by starting a consolidation of the sector via additional acquisitions and the creation of synergies.

Our end goal is to create superior long-term above-average value through a low-risk compounding cash flow strategy rather than through exit.

Our Approach

ACQUISITION:

We aim to acquire between 50% and 100% of the business with a 60% to 80% leverage. We will assume management responsibility and ensure smooth transition by leveraging the continuity of the team and the knowledge of the previous owner for the transition period.

GROWTH ACCELERATION:

Building on the continuity of the business and the experience of the existing team, we will aim to drive the growth in the following way:

1. Implement a vision & strategy translated in very simple KPIs shared with the team to drive us all towards the same goal

2. Open new sources of revenue and introduce comprehensive sales & marketing processes

3. Accelerate & simplify the internal and external processes and introduce digitalization

4. Put in place efficiency, costs & working capital programs to free funds for commercial investments.

 

CONSOLIDATION:

If the business sector is fragmented and we demonstrate that our growth strategy is successful, then we accelerate the value creation by starting a consolidation of the sector via additional acquisitions and the creation of synergies.

Our end goal is to create superior long-term above-average value through a low-risk compounding cash flow strategy rather than through exit.

Julien Favre is a Swiss national, EPFL engineer, and the CEO of K2 Equity. Julien founded K2 Equity after a successful career as general manager and CFO in Fortune 500 companies like Procter & Gamble and Kraft Heinz. He has worked in more than 20 countries, managed large teams (>3000 people) across many cultures (Western Europe, Eastern Europe, Middle-East and Africa). His expertise lies in business development, corporate strategy, and transformation. At K2 Equity, he leverages this experience to successfully acquire and grow Swiss and European SMEs.

Julien Favre is a Swiss national, EPFL engineer, and the CEO of K2 Equity. Julien founded K2 Equity after a successful career as general manager and CFO in Fortune 500 companies like Procter & Gamble and Kraft Heinz. He has worked in more than 20 countries, managed large teams (>3000 people) across many cultures (Western Europe, Eastern Europe, Middle-East and Africa). His expertise lies in business development, corporate strategy, and transformation. At K2 Equity, he leverages this experience to successfully acquire and grow Swiss and European SMEs.

GET IN TOUCH

 

 +(41)79 474 76 30, +(44)79 66 90 5752

✉️ julien.favre@k2equity.ch

GET IN TOUCH

 

 +41 79 474 76 30, +44 79 66 90 5752

✉️ julien.favre@k2equity.ch