Acquisition strategy

 

Acquisitions are one of the most important components for ADDvise Group’s growth. The Group’s acquisition strategy aims to drive growth and diversification, both geographically and product wise, within the life science sector. Our acquisition strategy combined with an effective integration process of acquired companies, has led to this increased growth. Since our first acquisition in 2010, our revenue has increased from SEK 22.3 million in 2010 to SEK 358.5 million in 2020.

 

ADDvise is a long-term owner that operates a decentralized business model; our focus is to maintain the local entrepreneurial spirit within our acquired companies. Our acquired companies retain their names and continue to operate independently within the framework of ADDvise’s corporate governance. We believe it contributes to a greater degree of flexibility that enables important business decisions and product development to take place closest to the business and its customers. Companies, when part of the Group, are offered central support functions and guidance in high-level strategic decisions.

 

Potential acquisitions are identified and assessed using the following selection criteria:

 

  • Financial assessment: The company should be stable and show a positive historical development. Their cash flow should be strong and have sales between SEK 30 – 200 million.

 

  • Market assessment: The company should be active in a relatively mature industry. The company is also assessed based on its geographical footprint and product diversification, in relation to ADDvise Group’s existing operations and geographical presence.