In an era where quality assurance and risk management have become pivotal to every industry, the significance of testing, inspection and certification (TIC) services has never been more pronounced. As we navigate through the complexities of global markets, the TIC sector is witnessing a transformative phase – a comprehensive roll-up.

What is TIC

The Testing, Inspection and Certification Market is a dynamic and rapidly evolving sector that plays a crucial role in ensuring product safety, quality and compliance with regulations across various industries. Overall, the products and services should meet  regulatory and industry standards to protect consumers and the environment. This market encompasses a wide range of services, from testing and inspection to certification, which are essential in mitigating risks, improving efficiency and facilitating smooth market access.

Roll-ups / Buy  &Build in TIC in Europe

The TIC sector in Europe has seen a significant M&A activity from both private equity and trade consolidators over the last five years. The strengthening regulatory landscape across various sectors, along with specific growth drivers within individual sub-sectors, has underpinned the ongoing attractiveness of TIC sector for investors. Buy-and-build strategies have played an important role in driving the growth of TIC, as incumbent players seek to leverage the benefits of scale to address a broad range of sub-sectors and unlock further synergies.

In the TIC market, Europe has been the dominant M&A geography, with 48% of the targets acquired in the last decade located here. Following cases illustrate the strong interest of PE firms in the TIC sector in Europe, driven by high levels of recurring revenues.

In 2021, CAG Groep, a TIC company, was acquired by SOCOTEC Group from Gate Invest. In the same year, Warburg Pincus, a global private equity firm, acquired a significant stake in NSF International, a leading global public health and safety organisation. NSF International provides testing, inspection and certification services in various sectors, including food, water, health sciences and consumer products. As another example, Oakley Capital, in recent years,  has been active in the TIC sector, acquiring various businesses to build a strong portfolio in the industry. One example is their investment in Schülerhilfe, a tutoring service that also provides certification services for educational programs.

Unconsolidated Swiss Market

The Swiss market is one of the few in Europe that remains relatively unconsolidated. Switzerland is home to a significant number of small and medium-sized enterprises (SMEs) that provide specialised TIC services. These companies focus on niche markets or specific industries, offering tailored solutions that larger firms might not provide. The high prevalence of these SMEs leads to market fragmentation and less consolidation. “TIC appears to be an attractive fragmented market in Switzerland which we have been carefully following for quite some time now. We aim to launch a Buy & Build platform in that space and are currently developing a pipeline of investment opportunities.” – adds Fabian Kroeher.

Additionally, Switzerland’s regulatory framework is complex and varies across different cantons. This decentralisation can create barriers for large TIC firms attempting to establish a consolidated market across the country. Whereas smaller, local firms often have the advantage of better understanding and navigating these regional regulations, maintaining their market share and contributing to the unconsolidated market.

Switzerland’s economic stability and strong sectors, such as pharmaceuticals, finance and manufacturing, provide a robust environment for TIC companies. Many of these sectors demand highly specialised TIC services, which local firms are well-positioned to provide, reducing the impetus for consolidation. Other factors contributing to the Swiss TIC market being unconsolidated are cultural and language diversity, strong local expertise and customer preference for local providers.

Swiss Market Overview

The Swiss market, particularly in the context of the TIC industry, features a unique and dynamic landscape of SMEs operating independently. Its fragmentation is reflected in the fact that, as of 2021, there were 723 companies in the Swiss TIC market, which is valued at CHF 2.7 billion and has been growing at a rate of approximately 4% annually. In addition, the Swiss TIC market is characterised by high standards of quality and innovation. Despite challenges such as high operational costs and regulatory complexity, the market presents significant opportunities for growth driven by technological advancements, sustainability trends and the robust demand from high-value industries.

In summary, the TIC market, particularly in Europe, is a dynamic and evolving sector. The trend of roll-ups and buy & builds is shaping the industry, offering opportunities for growth and consolidation. The Swiss market, while currently unconsolidated, presents potential for future development in the TIC sector. With the same approach, Fabian Kroeher concludes: “In the world of quality and safety, the Testing, Inspection, and Certification market roll-up is the natural way of market evolution.”

In the vibrant DACH region’s healthcare sector, private equity investors are increasingly deploying roll-up strategies to consolidate fragmented industries and enhance value. This method involves acquiring multiple smaller companies in the same industry and merging them into a single entity to capitalize on synergies and economies of scale. This approach is particularly relevant in healthcare, where the fragmentation of service providers like dental clinics, radiology centers and general practitioners offers ample opportunities for consolidation.

Insights from Winterberg Group

Winterberg Group, a multi-family office investment firm and a trailblazer for SMEs in healthcare, has identified this strategy as one of the best practices for investors. Fabian Kroeher, Partner and Co-Founder of Winterberg Group, emphasizes the potential benefits, stating, “The opportunity to streamline operations and centralize administrative functions offers tremendous value creation potential in the fragmented healthcare sector.”

PE Investors and Their Activities in the DACH Region

The landscape of healthcare roll-ups in the DACH region is populated by a variety of PE investors, each focusing on different sub-sectors within healthcare.

Key Players in Dental Sector Consolidation. Notable among them is Castik Capital Partners based in Munich, which has made significant strides with its investment in All Dent, a German operator of dental centers. Similarly, Investcorp, a global player from Bahrain, has taken significant steps with Acura, a network of approximately 100 dental practices led by former practice owners and business professionals.

Expanding European Influence and Specialized Investments. Further north, Nordic Capital out of Stockholm focuses on a broader European strategy but includes significant activity in DACH through the European Dental Group, a conglomerate of dental practices spread across six countries, including Germany. On a more specialized front, HTGF Founders Fund in Bonn supports PraxisEins, a German network aimed at addressing the looming general practitioner care shortages.

Investments in Specialized Healthcare Networks. Another significant player is Nord Holding, which invested in ZG Zentrum Gesundheit, a network of ophthalmologists and eye surgery centers primarily within Germany. Meanwhile, Telemos Capital from London has expanded its healthcare footprint with Sanoptis, a network of 400 ophthalmologic clinics across Europe, and with Stingray, an alliance focusing on cancer therapy practices in France and Germany.

Strategic Insights and Execution

Successfully rolling up healthcare entities in the DACH region requires a diligent strategy that hinges on several key practices. Kroeher underscores, “Standardizing operations and implementing best practices across all acquisitions is crucial. This not only reduces costs but also enhances patient outcomes significantly.”

Centralization and Bargaining Power. Centralization of administrative functions also plays a critical role. “By consolidating tasks such as HR, payroll, and compliance under one roof, we not only reduce redundancy but also enhance our negotiating power with vendors and suppliers,” Kroeher adds. Consequently, this enables negotiating better terms with vendors and suppliers. This strategic centralization optimizes back-office operations of healthcare practices.

Leveraging Healthcare IT Systems. In the digital age, embracing robust healthcare IT systems is non-negotiable. Kroeher notes, “A best-in-class practice management system lays the groundwork for seamlessly integrating smaller practices.”

Diligent work by heart. Lastly, conducting proper due diligence is indispensable. . Investors must perform thorough financial and tax due diligence to verify historical financial results and identify any potential liabilities before sealing the deal. This level of scrutiny ensures that the roll-up strategy is built on a solid foundation, mitigating risks and setting the stage for sustainable growth.

Avoiding Common Pitfalls

While the potential benefits of roll-up strategies in healthcare are significant, certain pitfalls must be avoided to ensure the success of such ventures.

Underestimating data policies. One of the most common mistakes is underestimating the importance of data policies. Failure to adequately back up data or secure sensitive patient information can lead to substantial fines and severe legal problems, highlighting the necessity of robust data management practices.

Regulatory Compliance. Moreover, compliance with regulatory standards cannot be overlooked. The healthcare sector is heavily regulated, and each acquisition must be thoroughly evaluated for its compliance posture. Neglecting this aspect can expose the roll-up to potential fines and legal challenges.

Overlooking billing practices. Additionally, investors must be cautious not to overlook the billing practices of target acquisitions. If a target practice employs more aggressive billing tactics than the acquiring system, this can lead to discrepancies in revenue projections post-acquisition. It’s crucial to align these practices to avoid unexpected shortfalls in revenue and adjust the purchase price accordingly.

Integration challenges. Managing the integration of multiple practices at the same time, appears as a further noteworthy challenge. “Ensuring a smooth transition requires well-structured planning and consideration of the cultural fit among the practices,” Kroeher advises. “Misjudging the compatibility of those practice cultures and systems can impede integration efforts.”


By and large, successful healthcare roll-ups depend on thorough standardization and centralization of operations, leveraging bargaining power and ensuring robust compliance with regulatory standards. Investors must avoid pitfalls such as underestimating integration challenges, overlooking billing practices and neglecting the cultural fit of acquired entities. Each acquisition should not only enhance operational efficiency, but also align with a broader strategic vision aimed at increasing the entity’s overall value and market presence.

Kroeher concludes, “With strategic foresight and careful execution, healthcare roll-ups can significantly increase value and operational efficiency, positioning these entities for greater success in a competitive market.”

In the dynamic landscape of digital threats, ransomware stands as a formidable challenge for modern organisations. Drawing from the firsthand experiences of Winterberg Group’s portfolio companies and insights from Executive Director Fabian Kroeher, this guide unfolds a strategic approach to ransomware incidents, illustrating the nuances of managing such crises effectively.

The Initial Strike: Isolate to Protect

The tale begins when a portfolio company detected an anomaly – an unusually slow network performance that was quickly identified as a ransomware attack. Following Winterberg Group’s protocol, the company acted swiftly. “The immediate disconnection of infected systems from our network was crucial,” recalls Kröher. This decisive action prevented the ransomware from spreading to interconnected systems, significantly containing the damage.

Comprehensive Assessment: The Heart of Response

After containment, the focus shifted to understanding the breadth and depth of the intrusion. The company deployed forensic tools to identify the ransomware strain, which turned out to be a variant known for encrypting data and exfiltrating sensitive information. “Documenting every detail of the attack was instrumental in shaping our recovery strategy and will assist in fortifying our defenses,” notes Kroeher. They meticulously recorded the ransomware type, the systems affected and any ransom notes left by the attackers. This thorough documentation aided in assessing the operational downtime and potential reputational damage.

Communication: A Key Pillar of Crisis Management

With a clear understanding of the attack’s impact, the company then communicated the breach. Internal notifications were issued to the IT team, management and the legal department, while external notifications followed, targeting affected clients and regulatory bodies. “We ensured compliance with data protection regulations by informing all stakeholders promptly,” Kroeher explains. This transparent approach helped maintain trust and provided a structured pathway for external support from law enforcement agencies.

The Dilemma: To Pay or Not to Pay

One of the most critical decisions was whether to engage with the attackers. “We considered the ransom demands carefully, weighing them against the potential long-term damages and the integrity of our data restoration capabilities,” Kroeher recounts. The decision was made to maintain a line of communication with the attackers while exploring all technical options for system restoration without succumbing to their demands.

Eradication and Recovery: A Path to Normalcy

Following a decision not to pay the ransom, the company focused on eradicating the ransomware. Infected devices were quarantined and subjected to a rigorous cleaning process using advanced anti-malware solutions. “Restoring our systems from backups was a pivotal step in resuming operations,” says Fabian Kroeher. They ensured these backups were uncompromised before using them to restore the affected systems fully.

Learning from the Incident: Forensics and Fortification

Post-crisis, a detailed forensic analysis revealed how the ransomware had penetrated their systems through a phishing email. This insight led to a significant overhaul of their cybersecurity protocols. “We patched the exploited vulnerabilities and enhanced our email security measures,” Kroeher details. These improvements were part of a broader initiative to boost their defenses, including regular security training for employees to recognise such threats.

Continuous Vigilance: The New Normal

In the aftermath, Winterberg Group implemented continuous monitoring tools to detect and respond to anomalies in real-time. Regular security audits became routine, ensuring that all systems adhered to the latest security standards. “Ongoing vigilance is crucial. We must stay as prepared and responsive as possible,” Kroeher asserts, emphasizing the importance of readiness in the face of evolving cyber threats.

Through this narrative, the steps taken by Winterberg Group’s portfolio company exemplify a robust and effective approach to managing ransomware attacks. Each phase of the response, enriched by Fabian Kroeher’s insights, highlights the importance of preparation, decisive action and continuous improvement, forming a blueprint for organizations navigating the turbulent waters of cybersecurity threats.

Healthcare Holding Schweiz AG, a Prominent Swiss Medtech Services and Distribution Group Managed by Winterberg Advisory GmbH, Expands its Portfolio with the Acquisition of MCM Medsys AG.


Baar, Switzerland – April 2024


Healthcare Holding Schweiz AG has successfully completed the acquisition of MCM MedsysAG (“MCM”), thereby expanding its product range. This acquisition enriches Healthcare Holding’s offerings with a diverse product portfolio of approximately 900 products across various medical fields, including interventional therapy, surgery, nephrology, and oncology.

“With the acquisition of MCM, we are expanding our Healthcare Holding Schweiz product portfolio to include new classes of medical products (Class IIa/b and Class III) and establishing a presence in Canton Solothurn. This marks our first major acquisition outside the Zurich area. We look forward to collaborating with MCM’s management team to further develop the business and leverage synergies within the Group,”  stated Fabian Kroeher, President of the Board of Healthcare Holding and Partner at Winterberg.

“I am delighted that the succession has been successfully executed, and I am excited to continue as a Board Member to support the old and new CEO David Egger in this new chapter of MCM Medsys. It is not just a significant milestone for the company but also a fantastic opportunity to enhance our contributions to the Swiss healthcare sector under the expanded capabilities and resources of the Group,” stated Louis Weidmann, the previous owner and President of the Board of MCM Medsys.

Healthcare Holding aims at becoming the undisputed market leader in Medtech Services and Distribution in Switzerland by professionalizing the industry and supplying Swiss patients with the world’s most innovative and high-quality medical products and services. The holding is currently at the forefront of ongoing acquisition processes and expects to successfully conclude further acquisitions shortly.

About MCM MedsysAG

Established in 1987 and headquartered in Solothurn, Switzerland, MCM Medsys AG is a value-added distributor of medical supplies and devices. It specializes in products for interventional therapy, surgery, nephrology, and oncology, offering a catalogue of over 900 items. With a supplier base of more than 20 exclusive partners, MCM supplies over 250 active clients, primarily including public hospitals, private clinics, and specialized medical practices. MCM distinguishes itself as a knowledgeable distributor with an innovative product portfolio, strong supplier collaboration, and dedicated customer support.

About Healthcare Holding Schweiz AG

As a leading player in the Swiss Medtech services and distribution sector, Healthcare Holding Schweiz AG based in Baar, Switzerland is focused on growing its portfolio through strategic acquisitions and partnerships. It is committed to innovation and customer satisfaction, aspiring to redefine industry standards with state-of-the-art solutions and exceptional service. To date, the group has acquired Senectovia Medizinaltechnik AG based in Urdorf, Winther Medical AG based in Baar and Mikrona Group AG from Schlieren with its business units Mikrona and Ortho Walker, as well as MCM Medsys AG based in Solothurn.

About Winterberg Advisory GmbH and Winterberg Group AG

Based in Gruenwald, Germany, Winterberg Advisory GmbH manages Private Equity investment funds, mainly concentrating on Small and Midcap Buy and Build platforms. Winterberg Group AG, located in Zug, Switzerland, is an independent family office that invests in Small and Midcap Private Equity, along with selective ventures in real estate and other asset classes.

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The Swiss Fabio Fagagnini has been appointed CEO of Healthcare Holding Schweiz AG by the board of directors with immediate effect. The leading Swiss Medtech Services and Distribution Group was founded in 2021 as an acquisition holding and has so far acquired four medium-sized companies.


Zug, Schweiz – April 3rd, 2024


Upon completing their MBAs at INSEAD in Fontainebleau in 2014, the three fellow students Beat Brägger, Lukas Gayler, and Fabio Fagagnini jointly acquired Mikrona Technologie AG. By that time, they could not have known what a remarkable journey awaited them. After successfully steering the well-known Swiss manufacturer of orthodontic treatment units back on track, they went on to acquire the Swiss market leader in orthodontic consumables, Ortho-Walker AG, in 2019. Last year, under the leadership of Fabio Fagagnini, they successfully sold the resulting entity, Mikrona Group AG, to Healthcare Holding Schweiz AG.

Hardly 6 months later, the entrepreneur and seasoned manager from St. Gallen received an offer from the investors to lead the entire Healthcare Holding, taking the helm in guiding both the management team and the integration of the group. He will assume this position in addition to his role as the Managing Director of Mikrona Group, and work closely with the investors’ board of directors.

Fabio is the perfect candidate for us. He gained initial experience through his leadership and sale of the family business, Fagagnini AG. Later, at Mikrona and Ortho-Walker, he authored an impressive success story. Additionally, Fabio brings over 20 years of international experience in the medical technology industry and has a broad network within the Swiss healthcare sector. We are delighted that he will now lead Healthcare Holding and its ambitious acquisition and integration strategy,” stated Fabian Kröher, Chairman of the Board of Healthcare Holding and Partner at Winterberg Group.

The appointment comes at the right time – just recently, Healthcare Holding was able to attract additional investors and raise a double-digit million amount of capital to even accelerate its further growth.

I am very excited about the new challenge!” Fabio Fagagnini adds, “We have the unique opportunity to establish the undisputed Swiss market leader in distribution and services of medical technology, introducing new approaches and technologies for the entire industry. We will play a crucial role in continuously improving the supply of medical products in Switzerland, equipping Swiss hospitals, practices, and care facilities with leading and innovative products.

The holding is currently at the forefront of ongoing acquisition processes and expects to successfully conclude further acquisitions shortly.

About Healthcare Holding Schweiz AG

As a leading player in the Swiss Medtech services and distribution sector, Healthcare Holding Schweiz AG based in Zug is focused on growing its portfolio through strategic acquisitions and partnerships. It is committed to innovation and customer satisfaction, aspiring to redefine industry standards with state-of-the-art solutions and exceptional service.

To date, the group has acquired Senectovia Medizinaltechnik AG based in Urdorf, Winther Medical AG based in Baar and Mikrona Group AG from Schlieren with its business units Mikrona and Ortho Walker.

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Note to Editors: Please credit Healthcare Holding Schweiz AG for all references to provided quotes and information.

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Winterberg Group, the investment team managing Healthcare Holding Schweiz AG, a leading Swiss Medtech Services and Distribution Group, teams up with KKA Partners, a Berlin-based private equity firm that invests in leading SMEs in Germany, Austria and Switzerland.


Zug, Switzerland – March 2024


Winterberg Advisory GmbH and KKA Management GmbH have successfully increased Healthcare Holding’s share capital in order to provide the holding with up to 50M EUR fresh equity to accelerate its buy & build strategy in MedTech Services and Distribution in Switzerland.

Healthcare Holding has been active since 2021 and has so far acquired four Swiss small and medium sized enterprises, mostly in succession situations. Healthcare Holding is one of Switzerland’s leading independent distributors and service providers of medical products, with a product portfolio spanning from rehabilitation and care to interventional therapy as well as dental and orthodontic applications.

“Our collaboration with KKA will enable us to execute our ambitious pipeline of acquisition targets and integration objectives in the next five years. This will propel Healthcare Holding to a different level when it comes to scale, business excellence and of course customer service”, stated Fabian Kroeher, Partner at Winterberg and President of Healthcare Holding’s Management Board.

“We are a purpose led private equity firm focusing on enhancing European SMEs with our signature Technology Enabled Value (TEV) creation strategies. Healthcare Holding and our collaboration with the Winterberg team provide an exciting opportunity to build a category leader and improve on customer needs and efficient supply chains through TEV among other measures.”, added Dominic Faber, Partner at KKA. “Our partnership with Winterberg is built to increase our joint support for growth at Healthcare Holding and we hope to help accelerate the acquisition strategy.”

Healthcare Holding’s goal is to become Switzerland’s undisputed market leader in Medtech Services and Distribution, introducing technology-enabled transformation to the industry and supplying Swiss customers with the world’s most innovative and high-quality medical products and services.

About KKA Partners

Founded in 2018, KKA Partners is a Berlin-based lower mid-market private equity firm that invests in leading companies in Germany, Austria and Switzerland – the so-called “Mittelstand”.

The Founding Partners all have a deep-rooted family and professional heritage in the Mittelstand developed over 20 years in working closely with Mittelstand companies.

KKA is at the forefront of the next wave of value creation through Technology Enabled Transformation of the Mittelstand.

About Healthcare Holding Schweiz AG

As a leading player in the Swiss Medtech services and distribution sector, Healthcare Holding Schweiz AG based in Zug is focused on growing its portfolio through strategic acquisitions and partnerships. It is committed to innovation and customer satisfaction, aspiring to redefine industry standards with state-of-the-art solutions and exceptional service.

To date, the group has acquired Senectovia Medizinaltechnik AG, Winther Medical AG and Mikrona Group AG with its business units Mikrona and Ortho Walker.

About Winterberg Advisory GmbH

Based in Gruenwald, Germany, Winterberg Advisory GmbH manages Private Equity investment funds, mainly concentrating on Small and Midcap Buy and Build platforms.

About Winterberg Group AG

Winterberg Group AG, located in Zug, Switzerland, is an independent family office that invests in Small and Midcap Private Equity, along with selective ventures in real estate and other asset classes.

For media inquiries, please contact

Note to Editors: Please credit Winterberg Group for all references to provided quotes and information.

For further information about KKA Partners visit

For further information about Winterberg Group AG and Healthcare Holding Schweiz AG, please visit

For Healthcare Holding’s portfolio companies visit,, and

This press release is prepared and distributed by Winterberg Advisory GmbH on behalf of Healthcare Holding Schweiz AG.

Artificial intelligence (AI) is not just a buzzword in the modern business landscape; it’s a tool that is reshaping industries worldwide, including the nuanced sector of private equity. At Winterberg Group, we are trying to pioneer the blend of AI capabilities with irreplaceable insights of human analysis. This synergy is driving a new era of efficiency and insight in identifying investment opportunities, conducting due diligence, managing portfolios and unlocking value across investments.

Fabian Kroeher, Co-Founder and Managing Partner of Winterberg Group, puts it succinctly: “While AI introduces unprecedented efficiency in processing and managing data, the essence of private equity — the strategic decision-making — is rooted in the nuanced judgment of our experienced team. Our approach harnesses AI to elevate, not replace, the critical human element.

Enhancing Deal Sourcing with AI

The first step in the investment process, deal sourcing, is significantly augmented by AI. By automating the initial screening of potential investments, AI algorithms can quickly generate comprehensive long-lists of candidates. This broadens the horizon for potential investments, bringing entities to light that might otherwise remain undiscovered. However, the subsequent analysis to narrow down these lists is where human experts shine, applying their strategic insight to identify the most promising opportunities.

Streamlining Due Diligence Through AI

In due diligence, AI tools automate the tedious analysis of financial statements, contracts and legal documents. This rapid, error-minimizing process allows the Winterberg Group to maintain a high level of thoroughness and accuracy. Yet, interpreting these findings, understanding their implications and making strategic decisions based on them remains a distinctly human task, requiring experience, intuition and critical thinking.

Portfolio Management and Optimization

For portfolio management, AI provides real-time data analysis, identifying trends and areas for improvement. This data-driven approach ensures that portfolio companies are operating efficiently and capitalizing on growth opportunities. The strategic decisions on how to act on this information, however, are made by the firm’s experts, who bring a broader perspective and strategic context to the data AI provides.

Risk Management: A Collaborative Effort

AI’s predictive models are invaluable for identifying potential risks and market shifts, offering a proactive stance on risk management. Nonetheless, the final assessment and the strategies developed to mitigate these risks are crafted by the human minds at Winterberg, who can weigh the nuanced implications of these risks in ways no algorithm can.

Value Creation: The Human Touch

In the realm of value creation, AI identifies opportunities for operational improvements and efficiency gains. But translating these opportunities into actionable strategies requires the human touch — expertise in management, a deep understanding of market dynamics and the creative thinking that drives innovation.

The Future: A Balance Between AI and Human Expertise

As the Winterberg Group looks to the future, it is clear that the role of AI in private equity is burgeoning. However, this growth is not at the expense of human insight but rather in concert with it. “AI is a powerful tool that, when used wisely, amplifies our capabilities,” says Fabian Kroeher. “But the core of our success lies in the strategic, human decisions that drive our investments. This balanced approach is what will continue to differentiate us in the market.

Final Thoughts

The integration of AI in the private equity sector heralds a new age of efficiency and insight. Yet, as the Winterberg Group demonstrates, the ultimate key to success lies in the seamless integration of AI’s computational power with the irreplaceable value of human analysis and decision-making. This synergy is what will enable private equity firms to not only navigate the complexities of today’s market but to thrive within them. “At Winterberg, we’re not just leveraging AI; we’re integrating it into a holistic strategy that places human insight at its core,” concludes Fabian Kroeher. “It’s this combination that enables us to unlock unparalleled success for our clients.


It’s becoming crucial for smaller companies in distribution with heavy service components to team up with larger groups. This is especially true for those facing the growing expectations of customers and dealing with more complex operations. This article dives into how consolidation creates unprecedented value for the customers. We’ll focus on key factors like improving sales, smart procurement, efficient logistics and creating more sales opportunities. These factors play a vital role in meeting the rising demands of customers and handling the increased complexities of day-to-day operations, making integration and collaboration initiatives successful.

In distribution, where service quality is paramount, small-cap integration strategies take on a specialised dimension. The focus extends beyond traditional synergies to encompass the elevation of service standards and market positioning. As Managing Partner Fabian Kroeher of Winterberg Group AG notes, “In distribution, value creation is not just about scale; it’s about creating a seamless customer experience and unlocking the potential for cross-sales.

I. Sales Excellence: Professionalizing Sales People and Processes

In the realm of sales excellence, leveraging the benefits of integrating smaller entities into a larger group extends beyond efficiency gains. One notable advantage is the heightened attractiveness for sales personnel. As smaller companies join a larger group, the collective strength and resources make the employer more appealing, attracting top-tier sales talent.

Moreover, the integration allows for a more strategic allocation of sales staff. By dividing them into product specialists, each focused on specific offerings, the team becomes more knowledgeable about the products they represent. This specialisation not only enhances the quality of customer interactions but also enables the sales force to provide tailored solutions, showcasing an unprecedented level of expertise in the marketplace. As Fabian Kroeher emphasizes, “Being able to attract top sales talent and having specialists who truly understand the intricacies of our products are integral to delivering a superior customer experience.

II. Procurement Excellence: Sourcing the Best Products Worldwide

A key benefit of operating under a larger entity lies in moving beyond opportunistic product-sourcing approaches and having dedicated personnel focused on identifying and securing the best products. This strategic shift ensures that procurement activities are driven by a more systematic and targeted approach, opening up increased opportunities in the global marketplace.

Additionally, a critical element of this procurement capability is the ability to tackle logistical and regulatory challenges. An integrated group, with its consolidated resources, can navigate complex regulatory landscapes more effectively, ensuring a smoother and more compliant import process.

From a manufacturer’s perspective, collaborations with such integrated groups become more attractive. Dealing with a leading business in a foreign country, rather than managing relationships with multiple small-sized businesses, offers manufacturers a streamlined and efficient partnership.

III. Professional Logistics and Fulfillment

Within the domain of professional logistics and fulfillment, the benefits of integrating smaller entities into a larger group become particularly evident in the creation of unparalleled service levels for end-customers. A pivotal aspect of this enhanced service is the establishment of swift in-house delivery capabilities, which come at no additional cost for the customers.

This achievement is uniquely made possible due to the scale of the integrated business. The larger size enables more efficient routing, allowing for streamlined logistics operations. Consequently, the optimized use of routes contributes to quicker deliveries and, importantly, allows for the absorption of delivery costs without imposing an extra burden on the customers.

IV. Cross-Sales Potential

Cross-sales potential emerges as a distinctive value lever in distribution businesses with value-added services embracing the benefits of integration into a larger group. By integrating companies with complementary product lines or service offerings, the consolidated entity can unlock cross-selling opportunities. This not only expands revenue streams but also reinforces the value proposition for customers.

Challenges and Mitigation Strategies

While the outlined levers contribute to value creation, challenges persist. Managing the transition from diverse sales cultures, aligning procurement processes and integrating logistics networks require careful planning. Fabian Kroeher advises, “The key is a phased approach. Communicate transparently, and build a collaborative culture that values the unique strengths each integrated entity brings.


In the realm of distribution businesses with a high service component, embracing the benefits of integration into a larger group offers a tailored approach to value creation. By emphasizing sales excellence, procurement efficiency, professional logistics and fulfillment, and cross-sales potential, companies can not only achieve economies of scale but also elevate their service standards and market position. As Managing Partner Fabian Kroeher rightly notes, “In distribution, it’s about more than just the numbers; it’s about creating a holistic customer experience that resonates and ensures sustainable growth, also in the B2B space.

The entrepreneurial spirit, a cornerstone of the global economy, has traditionally thrived on personal relationships, handshakes and a keen understanding of local markets. But the tide is turning. A digital tsunami is reshaping the way businesses, particularly small and medium-sized enterprises (SMEs), connect with customers and drive sales. The digitization of sales channels is massively disrupting established distribution and service business models for SMEs. Traditional sales-focused SMEs relying on offline channels struggle to keep up in today’s digital-first world. Meanwhile, born-digital startups are grasping new opportunities presented by innovative online sales and service delivery models.

Winterberg Group, a multi-family office investment firm at the forefront of innovation, foresees this digital disruption as a game-changer for SMEs in distribution and services.

Fabian Kroeher, Co-Founder and Executive Director of Winterberg Group, aptly summarizes the landscape: “The digital revolution is like a seismic shift, and SMEs who adapt will not only survive but thrive.” His words carry the weight of Winterberg’s extensive experience in identifying and supporting high-growth businesses across various sectors. So, how exactly are digital sales channels disrupting the traditional playbook for SMEs in distribution and services?

E-commerce Platforms Level the Playing Field

One of the most disruptive forces has been the rise of e-commerce platforms like Amazon which allow any business to easily set up an online store and reach a global customer base. “Platforms have removed traditional barriers to entry. Now even the smallest operation can theoretically compete globally on a level playing field with large incumbents,” says Fabian Kroeher.

Previously, physical distribution networks, supply chain scale advantages and large marketing budgets gave established players an edge over smaller competitors. Now, SMEs can plug into an existing customer base and fulfillment infrastructure for a small commission. They gain access to advanced digital marketing and analytics tools previously only affordable for big corporations.

This democratization of distribution has been a boon for many entrepreneurs and artisans. However, it has also squeezed margins as competition intensified. Popular categories need to be more supplied with me-too products. Standing out requires heavy investment in search engine optimization, product photography, customer reviews, and other techniques.

Rise of Specialised Marketplaces

Specialised marketplaces focused on niche product categories have further leveled the playing field. Examples include sites like Etsy for crafts and handmade goods or Anthropic for industrial equipment. “These marketplaces allow small businesses to tap into global demand for very specific needs,” says Fabian Kroeher.

For example, a niche equipment manufacturer that previously relied on engineered-to-order sales can now advertise standard models to a global base of potential buyers. This opens new revenue streams while reducing risks associated with custom projects. It also exposes these businesses to international buyers earlier in their growth journey.

Like broad e-commerce platforms, marketplaces provide established sales and fulfillment infrastructure. However, they tend to attract a more qualified type of buyer already searching for that specific product category. Competition also remains relatively specialised rather than cutthroat across all product categories.

Digital Tools Transform Service Industries

Distribution isn’t the only area disrupted – the digitalization of service delivery poses an even more existential threat to traditional offline service providers. Customers now expect a 24/7 digitally-enabled customer experience on their terms. For example, healthcare, legal and financial advisors are embracing telehealth/telemedicine, video conferencing and robo-advisors.

Customers complete paperwork, submit documents and engage with services without ever stepping into a physical branch. Payments move online, and intelligent chatbots handle basic inquiries. Fabian Kroeher of Winterberg Group states, “Service businesses must understand emerging preferences and evolve accordingly. Those clinging to outdated models risk losing ground quickly to born-digital innovators.

Progressive SMEs are developing virtual frontends for traditionally offline services. For instance, local repair shops offer appointment booking, payment and status updates via mobile-responsive websites and apps. Customers gain transparency and control while technicians organize schedules more efficiently. Over time, artificial intelligence and IoT sensors may automate parts of the service process end-to-end.

The Winterberg Group Perspective

Winterberg Group is a multi-family office investment firm that helps SMEs adapt to the changing business landscape. The firm was founded by Fabian Kroeher, who serves as the Co-Founder and Executive Director of Winterberg Group. Winterberg Group provides investment and strategy consulting services to SMEs.

Fabian Kroeher, speaking for Winterberg Group, states, “While digital disruption presents challenges, it also unlocks immense opportunities for SMEs in distribution and services. By embracing new technologies and adapting to changing customer behavior, businesses can not only weather the storm but emerge stronger and more competitive.” Winterberg Group’s commitment to innovation and its support for high-growth ventures positions it as a valuable partner for SMEs navigating the digital transformation.

Final Words

The digital sales revolution is not a fad – it’s a seismic shift reshaping the distribution and services landscape. By embracing the change, riding the waves with agility and leveraging the power of digital channels, SMEs can not only survive but thrive in this exciting new era. “The future belongs to those who are daring enough to dive into the digital tsunami, not those who wait for it to wash over them.”, said Fabian Kroeher.

In the dynamic private equity world, the buy-and-build strategy has emerged as a compelling value creation and portfolio growth approach. This strategy involves acquiring a platform company and expanding its reach and capabilities through strategic acquisitions of complementary businesses. By carefully selecting and integrating these add-on acquisitions, private equity firms can unlock significant synergies, enhance market share and drive exponential growth.

Fabian Kroeher, Co-Founder and Executive Director of Winterberg Group emphasizes this approach’s significance, “Buy-and-build strategies offer a unique opportunity to create value in a controlled and focused manner. By carefully selecting and integrating complementary businesses, we can leverage the strengths of each entity to achieve exponential growth and market dominance.

What is a Buy and Build Strategy?

A buy and build strategy involves a private equity firm acquiring a platform company in a specific industry or market. Then, the firm looks to grow the platform company organically and inorganically through add-on acquisitions of complementary businesses. The aim is to use the earnings and capital of the initial platform investment to purchase additional companies that either expand the platform company’s service offering or geographical reach.

Over time, the portfolio becomes a more sizeable and diversified business by integrating the add-ons. Fabian Kroeher states, “The buy-and-build strategy is a powerful tool for creating value in private equity investments. However, this strategy should be used with caution. The buy-and-build strategy is only appropriate for some businesses or situations. Before employing this strategy, it is critical to consider the risks and benefits carefully.

Benefits of the Buy-and-Build Strategy for Investors

The buy-and-build strategy offers many benefits for private equity investors, making it a highly attractive option in the current investment landscape.

Accelerated Growth.  Unlike organic growth, which can be slow and incremental, the buy-and-build strategy allows for rapid expansion by acquiring companies already established in their respective markets. This accelerated growth can significantly boost returns for investors.

Synergistic Value Creation. Integrating add-on acquisitions can lead to substantial synergies, such as cost savings through economies of scale, revenue enhancement through cross-selling opportunities and increased market power. These synergies can significantly enhance the overall value of the platform company.

Strategic Flexibility. The buy-and-build strategy allows investors to tailor their portfolios to market trends and opportunities. Investors can create a diversified and resilient portfolio by acquiring companies with complementary products, services or geographic reach.

Considerations for Investors

While the buy-and-build strategy presents numerous advantages, investors must consider several factors before adopting this approach.

Integration Challenges. Integrating multiple acquisitions into a cohesive unit can be complex and demanding. Investors must have the expertise and resources to effectively manage this process, ensuring that cultural integration, operational efficiencies and strategic alignment are achieved.

Acquisition Risk. Identifying and successfully executing add-on acquisitions is critical for the success of the buy-and-build strategy. Investors must carefully evaluate potential targets, assess their strategic fit and negotiate favourable terms to minimize risk.

Financial Discipline. The buy-and-build strategy can be capital-intensive, requiring careful financial planning and execution. Investors must ensure they have the necessary funding to support the platform company and potential acquisitions while maintaining a healthy balance sheet.

Benefits of the Buy-and-Build Strategy for Sellers

The buy-and-build strategy can also offer significant benefits for sellers, providing them with attractive exit opportunities and enhanced value realisation.

Premium Valuation. Sellers can often achieve higher valuations when their companies are part of a buy-and-build strategy. This is because the acquirer is not just buying a standalone company but also the potential for future growth and synergies.

Strategic Legacy.  Sellers can take pride in knowing that their company will continue to grow and thrive as part of a larger, more diversified entity. This legacy can be particularly meaningful for founders and entrepreneurs who have invested their heart and soul into building their businesses.

Access to Expertise and Resources. By joining a larger organisation, sellers gain access to the acquirer’s expertise and resources, which can help them accelerate their growth plans and achieve their business objectives.

Considerations for Sellers

Sellers should carefully evaluate the potential acquirer and their buy-and-build strategy before entering into agreements.

Cultural Fit. Sellers should ensure their company’s culture and values align with the acquirer’s. A strong cultural fit can facilitate a smoother integration process and increase the likelihood of long-term success.

Strategic Fit. Sellers should assess whether their company’s products, services and geographic reach complement the acquirer’s existing portfolio. A strong strategic fit will maximize the potential synergies and value-creation opportunities.

Exit Strategy. Sellers should carefully negotiate the terms of their exit, including the timing, valuation and form of payment. A well-defined exit strategy will ensure that their interests are protected and that they reap the full rewards of their investment.

The Role of Winterberg Group in Buy-and-Build Strategies

Winterberg Group, led by Co-Founder and Executive Director Fabian Kroeher, is a leading advisor to private equity firms and sellers executing buy-and-build strategies. With a deep understanding of the buy-and-build landscape and a proven track record of success, Winterberg Group provides comprehensive support throughout the entire investment process, from identifying and evaluating potential platform companies to executing add-on acquisitions and managing post-merger integration. By partnering with Winterberg Group, investors and sellers can access the firm’s deep expertise, extensive experience and proven track record in successfully executing buy-and-build strategies. Winterberg Group’s commitment to value creation and its focus on mitigating risks make it a trusted advisor in the buy-and-build space.

Final Words

Buy-and-build strategies offer a compelling approach for private equity investors seeking to create value in fragmented industries. However, successfully executing these strategies requires careful planning, industry expertise and navigating complex integration challenges. Sellers can also benefit from participating in buy-and-build strategies, gaining access to new markets, capabilities and financial resources while sharing in the value-creation process. By carefully considering the potential benefits and challenges, investors and sellers can make informed decisions about whether a buy-and-build strategy fits their specific goals and circumstances.