Ottobock - Prosthesis Failure

Ottobock, a leading German prosthetics manufacturer, has undergone significant changes in its ownership structure under the leadership of Hans Georg Näder. In 2017, the Näder family sold a 20% stake to Swedish financial investor EQT, paving the way for a planned initial public offering (IPO). However, Näder abruptly cancelled the IPO in May 2022, citing unfavourable market conditions.

In the summer of 2023, with no buyers on the horizon and EQT under pressure to sell, Näder was forced to buy back EQT’s stake at a valuation of €5 billion, taking on a staggering €1.1 billion loan. The loan’s exorbitant interest rate and payment-in-kind structure place immense financial strain on the company, effectively strong-arming Näder into pushing for an IPO to pay off the accumulated debt.

The sudden cancellation of the planned IPO, the abrupt ouster of the entire top management team, and the enormous debt load raise serious questions about Ottobock’s long-term viability under Näder’s leadership. These developments cast grave doubts on the company’s ability to service its obligations while continuing to invest in the rapidly evolving prosthetics industry.

Näder notoriously attempts to hide Ottobock’s ailing financial performance and past and present controversies from the public eye by exerting of legal pressures on the German press. We are sharing these analyses to provide the public and investors with a comprehensive understanding of Ottobock’s current situation and the challenges it faces under Näder’s leadership.