Acquisition - play a key part in creating growth

Acquisitions are central to growth creation and business development. Acquired businesses add new products, new expertise and extend the customer base within the Group. The aim is to add sales of approximately SEK 250 million each year through acquisitions. 

OEM primarily strives for three kinds of acquisitions. The first two described here are the most common:

• Operations with products that complement OEM's portfolio in an existing market.
• Operations that give access to a new geographic market for one of OEM's existing product areas.
• Operations of product-owning companies in one of the markets where OEM has an established position.

Identifying companies for acquisition

The main responsibility for seeking and identifying potential takeover targets lies with the managers in OEM's operations. The Group also works with brokers, audit firms and banks to ensure an inflow
of interesting acquisition targets. oem strives to engage in dialogue at an early stage with the owners of potential targets. This builds trusting relationships and gives OEM an opportunity to present itself as a long-term owner that can help the acquired businesses to continue to expand and evolve. The ideal acquisition targets have a number of common features:

• Trading company or product-owning company with annual sales of SEK 30 - 250 million.
• Represents manufacturers or has its own brands.
• May have processing or simpler production facilities.
• The selling entity sees it as advantageous to have an owner that is strongly committed to and interested in taking the business to the next stage of development.

Focus on the business

Central to OEM's culture is a strong commitment to the operations and business. When analysing acquisition targets, there is therefore a strong focus on the business and areas such as the organisation, company culture, portfolio of offerings and future potential. In addition, an appraisal is performed to determine the effects of the acquisition on oem's other operations and what synergies could be achieved. OEM makes acquisitions either by purchasing companies (with or without the previous owner remaining with the company) or by purchasing a company's assets.

Moving the acquired company to the next level of development

Based on its philosophy to be an active and long-term owner, OEM creates a development plan during the acquisition process for the business it is acquiring. OEM can, for example, make existing operations work to the advantage of the acquired company by opening up new markets and customer groups, and develop the range through its extensive network of manufacturing contacts. The acquired company can continue to operate as a separate company or can be integrated into one of the existing operations. The basis for these considerations is what is best for the current business and where are the greatest opportunities for growth.