If you want to make a big splash as a small company, Arno Fuchs is your man. His Munich consulting firm Fox Corporate Finance specializes in small and mid-sized companies. His clients include US billionaire and investing legend Warren Buffett, who has long been on the lookout for pearls in German industry.
Those pearls can be very lucrative. Just look at the results of this year’s initial public offerings, or IPOs, which is the process used when a company goes public. While big names such as Delivery Hero have garnered the headlines in Germany, Mr. Fuchs’s firm calculated that shares of smaller startups did far better on average than the IPOs of market heavyweights in the first half of this year.
“Small companies often offer more growth opportunities than large corporations,” said Stefan Weiner, head of German share issues with US investment bank JP Morgan.