Building Difference Makers
Our mission is to use recognized mega-trends to find niches where we can make multiple acquisitions and build strong well-functioning groups that can make a difference for the societies of tomorrow.
The Systematic Approach
Our value creation is based on the idea that a group is stronger than its parts. We grow our companies organically through cross-selling and best-practice sharing, as well as through acquisitions. By providing a solid foundation for growth and international expansion, our groups offer broader shoulders and a larger home for entrepreneurs, whilst still allowing them the opportunity to remain experts of their niches.
Identification
The first step is using recognised mega-trends to find niches with strong, long-term and resilient growth. Within these niches we hand-pick companies that could form part of a larger group. We partner with the entrepreneurs and work jointly to ensure that the companies benefit from being part of the group, gaining access to niche relevant competences, new products, markets and sales channels.
Clustering
In this phase the group grows both by acquisition and organically through activities like cross selling, internationalisation and best practice sharing. The selling entrepreneur stays on as business head of their division. A group CEO is brought in to focus on further acquisitions and ensuring that the group becomes as strong and resilient as possible, enabling the growth initiatives and supporting the business heads.
Strengthening
During the third phase we strengthen the group further while continuing the organic and acquired growth. We instill high quality ESG and social impact values, reduce environmental impact, as well as ensure further professionalisation at group level. An experienced and knowledgeable board is appointed on the group level, reporting is upgraded, a common code of conduct implemented, assessment of employee well-being initiated, wastage minimisation ensured, and a continued focus is kept on building out the M&A pipeline. The clear aim is for the groups formed to become European or even global number ones within their niche.
Our Philosophy
We know that the skill set required to build a company from 0 to 50 people is very different from those needed to scale it up from 50 to 500 people. The managerial competences differ and an acquisitional know-how is typically required, as well as an organization for it. Equally important for this type of expansion are financial capability and financing capacity.
Our mix of operational experience (having been CEOs of businesses), financial understanding and the experience from having done this journey a number of times, helps when we partner up with excellent entrepreneurs to build larger groups that achieve the scale up from 50 to 500 people and become European or even global leaders within their niche.
Markets
Our ambition is to contribute to a better tomorrow for us and generations to come. Our groups sell products, services and solutions that solve challenges we face today as well as ones that will prevail for decades to come.
Niches
Each of our group companies are carefully selected based on their stand alone success, as well as their potential in a group. The niches we invest in are characterised by strong barriers to entry, limited competition and resilient underlying growth trends.
Entrepreneurs
We invest in successful companies led by great entrepreneurs. The companies entering into our groups are provided with a long-term home, and the entrepreneurs leading them gain access to a group network of new sales channels, new geographies and relevant niche specific know-how in the form of the management of all sister companies in the group.
Acquisition Process
Getting to know each other
To start the journey of growth together we need a solid foundation to grow from. First step is to get to know each other. This is a process that should not be rushed. Building mutual trust and comfort provides a cornerstone for a common vision of the company’s and the group's future. It is important that we both feel comfortable in this decision. This stage entails several meetings, and if all goes well and both agree, it ends in signing a letter of intent (LOI).
Transaction
When the decision to partner up has been taken, the transaction process is run as efficiently as possible in order to put minimal strain on the actual running of the company. There a two parallel stages of a transaction process – the due diligence stage and the drafting of the share purchase agreement (SPA) – which in total typically take 4-8 weeks.
Group value creation
In daily operations very little changes after the transaction, as the selling entrepreneur continues to run the company, but together we start the joint journey towards the next level and work on leveraging the strengths of the group companies: We share best practices, group strategy and direction; Organic growth is increased through cross-selling the different product ranges into the individual group company client bases, and much more.
