What we look for
Acquisitions are a cornerstone in how we generate long-term growth in profits as well as shareholder value. We have a solid experience and track record in acquisitions. In fact, Bergman & Beving is one of the original Scandinavian serial acquirers and has been true to its model for more than 100 years, both in today’s Bergman & Beving and its spin-offs.
We like companies, preferably leaders, with expansion potential within a growing niche in the industrial or construction sectors. Furthermore, we favour well-managed companies with a proven track record of generating healthy earnings and strong cash flows i.e. usually not turnarounds or start-up companies. To enable a productive working climate, we prefer companies with a leadership team based in Northern Europe. Our ambition is to help companies reach their full potential.
Attractive niche: an ideal niche is (i) limited in size, (ii) subject to high barriers of entry, (iii) subject to stable growth over time, and (iv) sustainable from an ESG perspective.
#1 or #2 in the niche: companies should have a market leading position in their elected niche.
Small or mid-sized: ideal size is companies with a turnover of 5-20 MEUR.
Financial excellence: proven track records of EBIT margins in the range of 15 % or more, healthy return on capital employed and stable growth.
Limited operational risks: Limited dependence on individual employees, customers or suppliers.
HQ in Northern Europe: we are a Nordic company with a decentralised governance model. To make cooperation easier we have chosen to limit our geographical scope to countries with a similar business culture, and therefore focus on companies managed from Northern Europe. Sales may of course take place also in other geographies.
“Our companies are always interested in building relationships with potential sellers who want to see their business thrive for the long term. We want to preserve entrepreneurship in acquired companies while creating positive synergies by integrating additional acquisitions within the same niche.” - Martin Lundberg, General Counsel / M&A at Bergman & Beving
Our starting point
As we acquire well-managed companies, we have the motto ‘if it ain’t broken don’t fix it’. We offer an evolution rather than a revolution, which usually implies;
- 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 scenario for us is to find a leading player in an interesting niche and acquire that company, and then continue to build a more solid position in that niche by acquiring other successful companies in the same or related niches. We call it the Nordic Fortress.
Do we have a match? Please contact us for an open dialogue regarding a possible future together.
General Counsel / M&A
+46 709 188 146