It is clearly amazing how profitable it can be to invest into a niche industry. Here is a good example from the world of professional audio.
When Electra Partners recently sold Audiotonix, the professional audio group encompassing DiGiCo, Calrec and Allen & Heath to the French investor Astorg, the value of the deal was $254 million. Back when Electra Partners initially acquired Allen & Heath in 2013 the value was £42 million. They then acquired Calrec in 2014 and merged the companies with DiGiCo to create Audiotonix. They decided to invest in a niche industry – professional audio – managed their investment actively and exited with a decent deal.
So there is clearly money to be made from investment deals in niche industries. I choose professional audio as an example because I know the industry inside out. I actually wouldn’t be surprised if more deals like the above happen sooner rather than later. The industry is clearly going through a lot of changes recently.
From my perspective more traditional mid-size companies will be looking out for investors and chances for mergers and new players will be there. As more and more digital technology is developed from professional audio companies, the industry could also become interesting for adjacent industries. The mega-deal from Samsung to acquire Harman International is a clear sign for that.
I would suggest having a close look at professional audio. I definitely will be.
ABOUT JUERGEN BOPST:
Juergen Bopst is a senior executive with almost 20 years of international general management experience. He has a background in successfully managing large turn-around and post-merger projects and his industry knowledge includes microelectronics, consumer electronics, automotive and utilities. He has worked and lived in Switzerland, Austria, Germany and France and managed large projects in China, USA and the UK.
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