While publicly traded corporations tend to present themselves as having a narrow focus, the family-owned Dussmann Group takes a different approach: The group, which achieved a corporate revenue of 3 billion euros in 2023, and has more than 68,000 employees in 21 countries, operates in a wide variety of sectors. The common denominator: In the broadest sense, it is about services.

The largest business segment of the Dussmann Group generated around 2.5 billion euros from building services, catering services, and technical services. Half a billion euros in revenue came from the „Care & Kids“ sector, which provides care facilities for seniors, and on-site childcare. Approximately 40 million euros in revenue come from the media and bookstore „Dussmann – das Kulturkaufhaus“ in Berlin. The portfolio is a colourful array – and that has its advantages, CFO Dieter Royal said in an interview with Börsen-Zeitung. „In a family business, it’s also about not putting all your eggs in one basket.“

The CFO joined the Dussmann Group in the summer of 2017, previously working at Tognum (now Rolls-Royce Power Systems), among other companies. „Moving to a family business required a shift in mindset“, he reflects. While quarterly reports provided important deadlines in publicly traded companies, the focus now is on long-term perspectives. The boards of the Dussmann Group report to a foundation council with six members, which includes family members alongside external members. This structure is intended to ensure continuity.

While the broad structure increases complexity, Royal believes it also offers advantages: „If one area is struggling, it can be compensated for with other business segments.“ Currently, the situation in the care sector is difficult. Many facilities are struggling with increased costs, and several large care home operators have had to declare insolvency in recent months. The long-term perspective of the family business is helpful in this situation, he believes.

„Demographics are undeniable," says Royal. "The need for care places will continue to rise, while currently, the supply is declining. Despite all regulatory challenges, I am convinced that one can operate sustainably in this industry.“ When the time comes, the company wants to be ready.

Since 2018, Dussmann has also grown significantly through acquisitions, with corporate revenue increasing from 2 billion to 3 billion euros during this period. Recently, Dussmann strengthened its technical division by acquiring providers of electrical and communication technology and industrial process automation. This has also been a response to changing customer behaviour. The awarding of contracts for building cleaning and technical maintenance is more frequently being bundled within tenders. The share of revenue from technical services now accounts for over 20% of the corporate revenue.

„In recent years, about a quarter of the revenue growth has been via acquisitions, while the rest came from organic increases“, says CFO Royal. The Dussmann Group is debt-free, and there are no fixed budget guidelines for M&A. Typically, the company acquires smaller niche competencies, explains the CFO. „We are a very conservative company in our financial policy.“ The typical size for acquisitions is between 10 and 40 million euros.

Joint ventures are also a pathway. Dussmann, along with the Israeli cybersecurity specialist Code Blue, has launched a German joint venture to expand its portfolio of physical security services, to include cybersecurity offerings. Dussmann recently sold the charging station startup Chargemaker, which it co-owned with Mainova, to Ista.

In addition to technical services, a focus is on sustainability. The increasing regulatory demands for sustainability reporting, such as through the CSRD, present both a challenge and an opportunity for Royal: „As CFO, I am responsible for sustainability reporting, and I certainly see the enormous effort that it entails.“ Smaller SMEs typically struggle even more with this issue.

However, for the services provider Dussmann, it also represents a business opportunity. „The ESG scores of the real estate portfolio play a significant role in the sustainability strategy," he says. To achieve this, data must be collected and analysed, and "this is a classic service provider task that we will integrate into our portfolio.“

The company, which celebrated its 60th anniversary in 2023, publicly positions itself strongly in favour of diversity and openness. As a family business with German roots, the home market plays an important role. „We have a wide range of medium-sized businesses here, a lot of industry, many administrative locations – all of which are our customers“, explains Royal. To ensure this remains the case, the Dussmann Group is involved in the economic alliance „We Stand for Values“.

The rise of right-wing populist positions concerns Royal: „Our industry needs migration“, he emphasises. Otherwise, there would be a significant personnel shortage. In building cleaning, for instance, the majority of employees have a migration background. „We need these workers, and at the same time, entering the job market is an important step toward integration for many.“

For the coming years, the group has set a strategic framework called „Road to 2030“. A central component is innovation. But how does one keep track of future topics in such a diversified company? „It is certainly more challenging than in a single-product company“, admits Royal. „But I also find it more exciting because you look at the topics more broadly.“

Two years ago, the Dussmann Group established a centralised innovation management system. „There have always been many innovations in individual countries or divisions, but these developments haven’t always been integrated across the entire group“, says Royal. This will now be coordinated more closely. Modern technologies and an innovative working environment are also crucial factors for employee motivation – and that is key from the CFO's perspective. „Whether they work in building cleaning, care, or plant construction, we need motivated people everywhere. That’s a factor that unites all business areas.“