Investing in Underperforming Companies

DUBAI, UNITED ARAB EMIRATES, July 17, 2024 /Presslink.media/ Tactical Management,

Interviewer: Dr. Raphael Nagel, as the Founding Partner at Tactical Management, you have a distinctive approach to investing in underperforming companies. Can you share your strategy for acquisition, optimization, growth, and exit?

Dr. Raphael Nagel: Certainly. Our investment strategy at Tactical Management is centered around maintaining the maximum number of employees. We recognize that behind each employee is a family and their unique circumstances. This perspective guides our approach from acquisition to exit.

Interviewer: How do you approach the acquisition of underperforming companies?

Dr. Raphael Nagel: Typically, our investment vehicles acquire companies based on their net asset value (NAV). In cases where we acquire a subsidiary of a multinational corporation, we often request financial support to initiate the optimization process. Unlike many competitors, our strategy is not focused on cost-cutting. Instead, we aim to increase sales, revenue, and ultimately, profitability. This expansive optimization strategy makes us unique and positions us as allies to all stakeholders, including employees and unions.

Interviewer: What makes your optimization strategy different from others?

Dr. Raphael Nagel: Our approach is expansive rather than reductive. We focus on driving growth and improving operational efficiency to increase sales and revenue. By doing so, we maintain the company’s ecosystem and often the entire community’s ecosystem intact. This long-term perspective is crucial. We see ourselves as advisor partners with an extensive network of contacts, and in many ways, as interim managers. Our investment vehicles typically hold their stakes for 2 to 5 years.

Interviewer: Can you elaborate on your growth strategy?

Dr. Raphael Nagel: Growth is achieved through strategic enhancements across the company’s operations. We work closely with the existing management team to identify and implement growth opportunities. This might involve expanding product lines, entering new markets, or leveraging technology to improve efficiency. Our goal is to create sustainable growth that benefits all stakeholders.

Interviewer: How do you ensure that your strategy benefits employees and the community?

Dr. Raphael Nagel: By focusing on increasing sales and revenue rather than cutting costs, we ensure that the company’s workforce remains stable. This stability is essential for the well-being of employees and their families, and it also supports the local economy. We believe that a thriving company can contribute positively to its community, creating a ripple effect of benefits.

Interviewer: What is your approach to exiting an investment?

Dr. Raphael Nagel: When it comes to exiting, we aim for a smooth transition that ensures the continued success of the company. We seek buyers who share our vision and commitment to the company’s growth and sustainability. Our goal is to leave the company in a stronger position than when we acquired it, with a solid foundation for future success.

Interviewer: How do you navigate the challenges involved in this process?

Dr. Raphael Nagel: It’s not easy, but our extensive experience and network play a crucial role. We bring in the right expertise and resources to address the unique challenges each company faces. By acting as both advisors and interim managers, we ensure that our strategic vision is effectively implemented, driving the company towards growth and profitability.

Interviewer: Dr. Nagel, thank you for sharing your insights. It’s clear that Tactical Management’s approach to investing in underperforming companies is not only unique but also deeply committed to the well-being of employees and communities.

Dr. Raphael Nagel: Thank you. It’s a challenging but rewarding process, and we are proud to contribute positively to the companies and communities we work with.

Public Relations
Tactical Management
info@tacticalmanagement.ae
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