Stephan Grund, OKM Detectors: Company Acquisition Instead of Startup Founding

About this episode

While most entrepreneurs think about their next startup idea, Stephan Grund took a different path after selling Caterwings: He bought an existing company. Not with several millions from his own pocket, but with a smaller six-figure sum, he acquired OKM Detectors – a medium-sized company that manufactures metal detectors.

Why buy a company instead of founding one?

For experienced entrepreneurs, acquiring an existing company offers decisive advantages over starting from scratch. Grund explains that established companies already have functioning business models, existing customer structures, and proven processes. "The company normally already runs highly profitable," he emphasizes – a clear difference from startups, which often take years to become profitable.

OKM Detectors: An attractive acquisition target

OKM Detectors produces high-quality metal detectors and ground scanners. What made the company particularly attractive to Grund was the combination of established market position, technical expertise, and international customer base. Despite his lack of industry experience, he saw the potential to develop the company further through modern management methods and digital transformation.

The acquisition process: From idea to implementation

The path from first contact to actual takeover was complex. Grund first had to intensively familiarize himself with the technology and industry. At the same time, he needed to gain the seller's trust. "What expectations does the seller of a medium-sized company have of you as a successor?" – This question is central for any potential buyer.

Sellers usually don't just look for the highest price, but someone who will continue their life's work, preserve jobs, and respect the company culture. Grund was able to convince through his business experience and his vision for OKM Detectors.

Financing without millions in the bank

One of the most common questions is: Who can actually afford to acquire a medium-sized company? Grund shows that you don't always need millions of your own money. Through a clever financing structure that combines bank loans, seller financing, and a smaller equity contribution, he was able to handle the transaction.

The art lies in structuring the various financing components so that all parties involved – bank, seller, and buyer – are satisfied. Platforms like CARL Finance help find suitable companies and financing partners.

Dealing with millions at risk

Despite external financing, the new owner bears the entrepreneurial risk. Grund describes how he deals with the pressure of having "several millions at risk." His strategy: intensive preparation, realistic planning, and focusing on sustainable improvements instead of quick upheavals.

The first steps as the new owner

The first day at OKM Detectors was characterized by careful observation and listening. Grund emphasizes how important it is to first understand existing employees and structures before initiating changes. "How do employees react to such a takeover?" – This concern is shared by many buyers.

Reactions ranged from skepticism to cautious optimism. Crucial was transparent communication about plans and goals, as well as emphasizing that proven structures should be preserved.

Status report after two years

After two years of ownership, Grund draws a positive conclusion. The company could be stabilized and modernized in important areas. The combination of proven structures and new impulses is showing results.

Prerequisites for a successful acquisition

What experience and capital are necessary? Grund recommends at least five to ten years of professional experience, ideally in leadership positions. The necessary equity is usually in the six-figure range – significantly less than often assumed.

Important factors for attractive acquisition targets:

• –Stable earnings situation
• –Succession planning unresolved
• –Development potential available
• –Not too dependent on one person

Conclusion: An alternative path to entrepreneurship

Acquiring existing companies offers experienced managers an interesting alternative to startup founding. With proper preparation, a well-thought-out financing strategy, and sensitive transition management, successful acquisitions can be realized even without million-dollar investments.