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Private equity in action - Case Study

Bike24

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Country Germany
Region Sachsen
Investor The Riverside Company
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Over just three years, Bike24 became a global e-commerce player in cycling and fitness with Riverside’s investment and support. The transformation was achieved through a significant investment and Riverside’s knowhow in developing a mobile version of the web site and in warehouse automation, which enabled faster shipping times and more efficient inventory management. This, combined with a professionalisation of Bike24’s systems, a strengthened management team and capital improvements, ensured the business almost doubled in size under Riverside’s ownership. The success of the deal was underpinned by a strong partnership between the private equity investor and an outstanding and entrepreneurial leadership team.

Andrés Martin-Birner

Co-Founder and CEO

Bike24

It has been a hugely successful partnership with Riverside, who helped us bring our business to the next level thanks to bold investments, strengthening our team and professionalisation of our organisation. Quotation Marks Graphic
22.7%

annual sales growth over three years

100

jobs created

What did the business need?

  • Better website functionality and Google search results
  • Improved warehousing and inventory
  • More professional financial reporting

How did private equity backing create lasting value?

  • Invested significant capital to automate warehouse, expediting shipping and enhancing inventory management.
  • Hired logistics expert with Amazon experience to further improve warehousing and infrastructure processes
  • Provided support through Riverside operating partner with prior online consumer goods experience, who led improvement efforts
  • Developed a better and more mobile-friendly website
  • Strengthened management team through addition of new, highly experienced CFO

What outcomes did private equity investment achieve?

  • Grew sales annual by 22.7% during three-year ownership
  • Improved EBITDA by 57%
  • Grew in core markets while expanding internationally
  • Added 100 employees
  • Attracted buyer that created the world’s largest online bicycling retailer

More information

Bike24

Watch this video about the investment

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