Avedo Group Investment



CompanyAvedo Group
Initial Investment DateDecember 2015
ExitJuly 2017
Entry Valuation44.9m
Exit Valuation93.75
Total Investment22.3m
Current Sale Value51.1m
2017 Revenue61m
2017 EBITDA10.8m
Initial Ownership57%
Investment TypeReplacement Capital
Seafort Role at EntrySole Institutional Investor
Multiple at Cost2.3x
Gross IRR~75%


Business Description and Investment Thesis


The Avedo Group is a dialogue marketing specialist for Germany specialized in lead management, telemarketing and telesales and business process outsourcing (BPO). At the time of entry Avedo employed around 1000 people in its locations in Rostock, Cologne, Leipzig and Munich.


Key Investment Considerations


Avedo had developed efficient time keeping processes to grant customers a very precise cost budget.

This together with targeting attractive customers led to an attractive EBITDA margin of 16-18%, which is among the highest in the industry.

We looked for add-on targets to satisfy growing customer demand to expand as fast as possible.


Post-Investment Value Development and role of Seafort


Right after investing we started an intensive growth program with further process streamlining, opening of new locations with attractive price structures (Ruhr-Area), negotiating and signing add-on acquisitions, re-financing of the group and pitching for new clients.



The result was a strong growth both top and bottom line from €30m to €61m in two years!


Exit and Valuation


As a result of the strong growth the company became of interest to a strategic buyer (STROER Group) who was looking for an attractive business service processing company. Even before we could start an auction process to the large European competitors, we were offered €93,7m and so within a holding period of only 18 months we returned 2,3x money invested with an IRR of 75%!