Your current portfolio includes a material investment in a textile producer. Current trends are

sportive and outdoor textiles made of special materials. Your producer does not have the

necessary know-how. You became aware of a market player with such production facilities and

expertise. This target is currently in a bad cash situation, because the owner (100%) and former

founder has not been taking care of the company for years. Investments are delayed and the

owner cashed out dividends leading to a difficult cash situation. Consider the following:

Know-how and machineries for the new trend are available

Patents for the technology

Net cash amounts to EUR -5 Mill. (bank loans), which are due within 3 years

Average annual revenues of EUR 20 Mill.

Average annual after tax profit of EUR 0,0 since years

Probable synergies of EUR 1,0 Mill. Profit

Investment opportunity? What could be a reasonable purchase price? What else has to be considered?