Lautsprecher Teufel

Country: Germany

Region: Berlin

Investors: The Riverside Company

When the founder of ‘Lautsprecher Teufel’, the German loudspeaker designer and manufacturer, decided it was time to step away from his day-to-day role after more than 25 years, he identified private equity firm Riverside Europe as the ideal partner to take the company forward.

Riverside quickly identified a new CEO and built the board – all industry experts who could share their experiences and networks to support the growth of the business. During the four-year investment period, Teufel grew at three times the rate of the overall German audio market, and became one of the most successful investments in Riverside’s history. Riverside sold the business in 2010.

Thorsten Reuber

CEO - Teufel

The past decade has been an exciting time in the company’s history. We have grown much faster than would have been possible without the Riverside Company.

6.5x

gross return to investors

staff numbers at exit, from 26 at entry

What did the business need?

Development of management and board
Professionalisation of marketing activities
Continuous development and release of new products
Penetration into international markets
Improvement of processes and operational stability

How did private equity backing create lasting value?

Cultural change from a patriarchal to a team-oriented culture
Expansion of product portfolio into integrated systems, with 20 new products introduced in 2010, compared with 14 in 2009 and 8 in 2008
Development of new website to enhance sales, as well as launch of English language website to boost penetration of the UK market
Implementation of new enterprise resource planning system to offer additional possibilities to optimise the business
Ability to draw on “Riverside Toolkit” - a panel of top international experts