with management

Combining the vision of the companies’ management teams with our experience as a professional investor, sharing a common view of the business project and the same determination to achieve ambitions while creating an open and confident relationship: these are the foundations of the partnership formed with management teams.

From the outset the roles and responsibilities of each player are clearly defined in a shareholders’ agreement which unambiguously stipulates the governance rules, aligned with optimum standards.
Strategic and financial decisions are made by the supervisory board, on which Sparring Capital plays an active and constructive role, contributing the experience accumulated during the many investments we have made. This organisational structure ensures an objective and experienced-based approach to strategic decision-making and contingencies management. It also demonstrates Sparring Capital’s desire to respect the operational management autonomy of executives who remain at the head of the company.

Together with management teams, we identify the main priorities through a detailed action plan, the foundation stones of which are laid even before our capitalistic involvement. The action plan summarises the value creation programme that will be implemented with the support of Sparring Capital, optimising the exit conditions at the end of our investment cycle (generally between 5 and 7 years). The plan is based on assumptions and an implementation time-line that are credible. The fundamental qualities of the companies and of the management teams are used to improve what was already well done and to accelerate growth using the value creation leverage identified.

Finally, each of our investments is based on a perfect alignment of the interests of corporate executives and Sparring Capital: they automatically become shareholders with us and we establish incentivising added-value sharing mechanisms that reinforce the alignment of interests.