The construction sector is fragmented, and there are many small and medium-sized enterprises with low investment and working capital needs and strong business cash flows. Often, these companies do not have viable organic investment opportunities for the cash flow they generate. As part of KOTERA Group, this cash flow can be used effectively by investing it profitably in acquisitions and by allocating the cash flow within the group in an optimal way from the perspective of organic growth.
KOTERA Group’s strategy is to purchase small and medium-sized construction companies having strong and sustainable competitive advantage enabling special expertise. Special expertise may include, in addition to special skills, strong local knowledge or carefully built customer or partnership relationships. The companies we own have a long history of successful business and strong, often entrepreneur-led management.
Acquired companies continue to operate independently under their own brands and management after the business acquisition, leveraging their strong local knowledge and special skills. Entrepreneurs’ networks and knowledge are used in screening potential acquisition targets. We look for companies that fit into our high standard culture and encourage the sellers of the companies to make significant reinvestments into KOTERA Group shares.
We strongly believe that the company’s management is the best expert of its own business. However, KOTERA Group offers its owned companies the opportunity to network with other successful companies and share best practices, ideas, and resources for their development. KOTERA Group also supports its companies in areas like strategic planning, risk management, recruitment, and management. In addition to knowledge and skill synergies, development potential can also be found among the group companies in areas such as material procurement, administration, and financing, and the group companies can offer a wider range of services under same roof.
