| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 98.00 | 470 |
| Intrinsic value (DCF) | 14.64 | -15 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Brockhaus Technologies AG is a Frankfurt-based technology holding company specializing in middle-market buyouts and growth investments in the German-speaking region. Founded in 2017 and listed on the London Stock Exchange, the firm operates as a private equity investor with a focus on acquiring majority stakes in high-potential technology and software companies. With a market capitalization of €154 million (2023), Brockhaus leverages its regional expertise to identify and scale niche players in the Software - Application sector. The company reported €187.6 million in revenue for FY2023 but faced a net loss of €3.3 million, reflecting its growth-stage investment strategy. Its portfolio benefits from Germany's robust tech ecosystem, positioning it as a consolidator in DACH-region B2B software markets. The firm maintains a conservative beta of 0.76, suggesting lower volatility than broader tech indices.
Brockhaus Technologies presents a specialized play on German mid-market tech buyouts, offering exposure to the DACH region's software growth with mitigated volatility (β=0.76). While the FY2023 net loss of €3.3 million raises execution concerns, positive operating cash flow of €34.8 million demonstrates portfolio monetization capabilities. The 6.6% dividend yield (€0.22/share) is unusual for a growth-focused PE firm, potentially signaling confidence in cash generation. Key risks include high leverage (€268M debt vs. €54M cash) and concentrated regional exposure. Investors should weigh its first-mover advantage in German tech roll-ups against rising competition from larger PE firms expanding into middle-market deals.
Brockhaus Technologies occupies a unique niche as a publicly traded PE firm focused on German-speaking mid-market tech acquisitions—a strategy distinct from both traditional PE funds and software consolidators. Its competitive edge stems from hyper-local deal sourcing (85% of targets being founder-owned DACH businesses) and operational expertise in scaling German SMEs, evidenced by 28.5% YoY revenue growth across holdings. However, the firm faces intensifying competition from three fronts: (1) Global PE giants like EQT and Hellman & Friedman now targeting €50-200M German tech deals, (2) Software roll-up players such as Rocket Software's European expansion, and (3) Regional rivals like Deutsche Beteiligungs AG (DBAGn.DE) with deeper local networks. Brockhaus differentiates through its pure-play tech focus (vs. DBAG's industrial exposure) and shareholder liquidity via LSE listing—an advantage over traditional PE funds. Its €30-80M check size range allows participation in deals too small for mega-funds yet requires demonstrating superior value-add to outbid strategic buyers like SAP's venture arm.