Acquisition is one of the most important components in the ADDvise Group’s growth strategy. The purpose of the acquisitions is to create critical mass in the different industries that the group does business in. The critical mass and industrial logic underlying the acquisitions strengthens existing operations and allows new market share to be gained. The customary synergies will be achieved on the expense side.
The industrial logic in the acquisitions will create long-term value for the company’s shareholders. Today, focus is directed at companies within the life science sector, which constitutes the core of the ADDvise Group. Under this strategy, the attitude towards acquisitions is rather opportunistic.
The ADDvise Group’s board of directors and executive management have worked with acquisitions over a long period. This means the competence necessary to identify a good acquisition and then integrate the company is available internally. Our preparedness to take on board acquired assets, companies and company structures is also good.
The payment structure applied by the ADDvise Group consists mainly of a mix of cash, shares and a supplementary purchase price. We use this payment model partly in order to create an incentive for the seller to continue assuming responsibility for the development of the company after the sale has taken place, and also in order to meet the price expectations the seller has.
The companies that ADDvise focuses on are primarily mature companies with good cash flows in more-or-less mature industries. Candidates for acquisition must operate in the business-to-business market and the level of risk in the company must be relatively low. The size of the candidates may vary, but annual sales may not be below SEK 20 million.