Riverside invested in DPA, a Danish manufacturer of high-end microphones used by many of the world’s most popular musicians, in late 2013, attracted by its high-quality products and strong product development capabilities. The firm helped DPA accelerate growth by expanding product offerings in amplifier technology and headset microphones, as well as enhancing sales and distribution, improving the management team, and focusing on sales effectiveness, product development and manufacturing efficiencies.
During Riverside’s five-year long investment, DPA’s sales and EBITDA nearly doubled while its product portfolio and distribution network grew significantly, cementing its clear leadership position in small, sophisticated body-worn microphones for professional use. Riverside sold the business to leading audio business RCF Group, realising a strong return for investors.
“It has been a pleasure working with the Riverside team and being a part of this great success. I’m proud of the work we’ve accomplished together. Sales coming from new products are up and all major areas of the business have been professionalised.”
Kalle Hvidt Nielsen CEO, DPA Microphones
What did the business need?
- Expansion of the distribution network and increased sales
- Professionalisation of the business
- Improvements to marketing function
How did private equity backing create lasting value?
- Helped DPA accelerate growth by expanding product offerings
- Enhanced sales and distribution, including setting up its own distribution in the US
- Improved operations by boosting the management team, including bringing in a new CEO
- Focused on sales effectiveness, product development and manufacturing efficiencies
- Increased control of the DPA brand in key markets through add-on acquisitions of local distributors
What outcomes did private equity investment achieve?
- Nearly doubled sales and profits
- Increased sales of new products from less than 5% to more than 40% of total revenue
- Cemented DPA’s clear leadership position in small, sophisticated body-worn microphones