Financing entrepreneurial growth independently
This episode was recorded in German.
One CFO, four business units, and a clear vision
What do you do when your house bank suddenly walks away? For many mid-sized companies, that would be a shock. For Johann Schmid-Davis, CFO of the HÖRMANN Group, it was the starting point for a strategic transformation, and the beginning of a success story that shows how entrepreneurial independence in mid-sized companies can be rethought.
In the latest episode of "Hope Is Not a Strategy," Christian Underwood talks with Johann Schmid-Davis about the evolution of a 70-year-old family business that grew from a traditional trade operation into a diversified industrial group with four strong business units, spanning automotive, communications, logistics, and engineering. That very diversity, Johann Schmid-Davis says, was a decisive stabilizing factor in times of crisis. But when the company's longtime house bank unexpectedly called in its loans in 2010, after the financial crisis, one thing became clear: stability needs a new foundation, too.
From bank loan to bond: a paradigm shift
Rather than remain dependent on banks, the HÖRMANN Group chose the capital markets. In 2013, the company placed its first corporate bond, a bold move for a family business that had rarely spoken publicly about its numbers. Johann Schmid-Davis describes how a new financial architecture emerged from it: stable maturities, predictable interest rates, and a balanced mix of equity, bank financing, promissory note loans, and bonds. "For us, a bond is like financing set in concrete," says Johann Schmid-Davis. "It runs for five years, regardless of the economy or bank terms, and it creates exactly the room you need to invest strategically."
Think like a capital markets player, then act like one
Going to the capital markets is not a quick fix. It took three years of preparation, structural changes, and a lot of persuasion to make the HÖRMANN Group capital markets ready. New reporting structures, quarterly disclosures, and a holding structure created transparency, and earned the company the trust of international investors it enjoys today. What stands out: the HÖRMANN Group recognized early on that openness is not a risk but a competitive advantage. Reporting became a strategic discipline, and capital markets expertise became part of the company's DNA.
Independence as a strategic goal
What sounds like a financial decision is in fact a strategic realignment. The HÖRMANN Group understood that raising capital is not an end in itself but a lever for long-term freedom of action. At a time when many companies complain about their dependence on banks, supply chains, or economic cycles, this example shows that independence can be planned, if you are willing to change structures and take responsibility.
Who this episode is for
This podcast is a must for CFOs, strategists, and entrepreneurs who want to think beyond conventional financing routes. It shows how mid-sized companies can use the capital markets as an instrument for stability, growth, and freedom, and why it pays to treat financial strategy as part of corporate strategy.
🎧 Listen now and find out how the HÖRMANN Group combines financial architecture, courage, and strategy.
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