Attractive niche
An attractive niche (i) is limited in size, (ii) is subject to high barriers to entry, (iii) demonstrates stable growth over time and (iv) is sustainable from an ESG (environment, social and governance) perspective.
Investment philosophy
Focus areas
Acquisitions are central to our long-term value creation. As one of Scandinavia’s original serial acquirers, we have consistently applied the same proven model for more than a century, both within Bergman & Beving and through its spin-offs.
We seek well-positioned companies, preferably market leaders, with expansion potential in growing niches within the industrial or construction sectors. We favour well-managed businesses with a proven ability to generate healthy earnings, and strong cash flows and typically do not invest in start-ups or turnaround situations. To enable a productive working climate, we prefer companies with leadership teams based in Northern Europe. Our ambition is to support companies in reaching their full potential.
Acquisition criteria
#1 or #2 in their niche
Companies must hold a market-leading position in their niche.
Strong financial results
Proven results, with EBIT margins of more than 15 percent over a business cycle and profitability (P/WC) above 45 percent.
Earnings intervals
We define small or mid-sized niche companies as those with earnings between SEK 15 Million and SEK 40 Million.
Limited operational risks
Limited dependence on individual employees, customers or suppliers. We look for companies that have long product life cycles and strong management teams.
Head office in northern Europe
We are a Nordic company with a decentralised governance model, focused on companies based in Northern Europe with a similar corporate culture.
Our starting point
As we acquire well-managed companies, we are guided by the principle that proven business models should be preserved under the motto "if it ain't broken don't fix it". We offer evolution rather than a revolution, which typically involves:
Continuing to run the company in a similar manner as to date
Retaining the profile, company name and location(s)
Developing the organisation based on existing employees, customers, suppliers and partners
Retaining current well-functioning processes and systems, including IT systems
Not forcing synergies with group companies, instead informing about synergy opportunities
A typical acquisition for us is to acquire a leading company in an attractive niche and then strengthen that position through additional acquisitions of successful companies within the same or related niches. This long-term approach to building strong niche positions is referred to as the Nordic Fortress.
Do we have a match?
If you would like to learn more about Bergman & Beving as an owner, feel free to reach out to us.