Acquisitions are central to business development and growth creation. Acquired businesses add new products, extend the customer base and bring new expertise to the Group. The aim is for acquisitions to add sales of SEK 150 - 200 million each year.
OEM primarily strives for three kinds of acquisitions. The first two described here are the most common:
OEM is constantly on the look-out for potential takeover targets. All of OEM's operations have a responsibility to identify potential acquisition targets, which is coordinated by Group management. A network of brokers, audit firms and banks also helps ensure a constant inflow of interesting acquisition targets. OEM strives to engage in dialogue at an early stage with the owners of potential targets. It is important to build a trusting relationship and present the platforms that OEM can offer for developing and expanding the businesses after they have been acquired. The ideal acquisition targets have a number of common features:
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 an entire company (with or without the previous owner remaining with the company) or by purchasing a company's assets.
Based on its philosophy to be an active and long-term owner, OEM creates a development plan for each business it acquires. OEM can, for example, make its existing operations work to the advantage of the acquired company by opening up new markets and customer groups. The acquired company can continue to operate as a separate company or is 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.