„We take account of ever-changing ecosystems impacting
corporate investments by building and operating tailored
active investment management structures. Thus we ensure
shareholder targets achievement.“

Frank Stehling, Founder

 

Positive Alpha Services’ philosophy and active investment management approach has evolved over time based on our hands-on investment management practice as well as on our operational experience as senior executives in software and technology companies.

Positive Alpha Services believes in longevity and sustainable growth as investment corner stones. We’ve mastered the processes, tools and soft skills required for medium-sized corporate investments in software & technology and other selected industries and have strived for a maximum of sustainable return from our managed investments.

Discover our guiding principles for Evergreen Investments:

 Active Portfolio Management

  • Active investment management does not mean to dis-empower the C-level but to constructively challenge them and make management accountable at the same time i.e. align decision power and responsibility.
  • Investors must not only look at financial figures and satisfying returns as the company might perform below its peers, lose market share and burn shareholder value in the medium to long run.
  • The foundation of successful investments are professional ownership decisions backed by industry-savvy analysis and operational experience.
  • Any company is driven by certain key processes and assets. Identifying those and implementing appropriate controlling and steering structures is the best way to ensure effective investment management.

 
 Corporate Development

  • Effective corporate development advise requires in-depth industry experience both from a commercial and technical point of view.
  • Due to fast software & technology innovations shareholders have to ensure a more pro-active approach on corporate development compared to other industries. Otherwise management and investors may find themselves left behind.
  • Even if markets are local software & technology is global and requires global considerations and approaches for a successful corporate development.
  • Any corporate development activity has to either increase long-term value for the customers or the competitiveness of the company.

 
 Transaction Preparation and Execution

  • Successful transaction management goes beyond timing, procedures and valuations. It must encompass the whole eco system of the target as well as the acquiring company.
  • Only if you have gained operational experience you will be able to identify the black spots and the core value of a company.
  • Shareholders must not push their management into M&A strategies as they ought to leave decisions where responsibility for a transaction will be placed after the deal.
  • The missing synchronization of a company’s business with an intended transaction has dramatic impact on the company’s success no matter whether you are selling or buying.
  • The importance of many diligence items in software businesses vary from other industries. In-depth industry expertise is a must to master a profound analysis and valuation of a software company.

 
 PTI and Governance Enforcement

  • Balance sheets tell you something about the past, but to achieve your investment goals, you need to implement governance structures which provide you with valuable insights about the presence and the future.
  • You cannot overestimate the importance of culture and human relationships in a corporate environment.
  • Post Transaction Integration begins with the initial investment proposal and must be developed throughout the whole acquisition process.
  • Medium sized businesses require a well orchestrated set of instruments to secure the enforcement of shareholder strategy and targets.
  • Each shareholder and acquiring company requires an individual approach to PTI and Governance Enforcement based on existing practice, targets and strategy within the acquiring group of companies.
 
 Proprietary Investments

  • Positive Alpha does opportunistic investments.
  • We engage with both our own financial resources and our hands-on approach in order to create excellent corporations.
  • For our direct investments we develop value enhancing long-term strategies without a pre-defined exit.
  • For its proprietary investments Positive Alpha applies the same standards and scrutiny as for investments managed on behalf of one of our clients.
  • Positive Alpha does co-invest with it‘s clients if desired.
 
 

 

Copyright © 2013-15 by Positive Alpha Services