Acquisitions are an important part of business and organisational growth, and they are necessary if the goals set are to be achieved. Addtech is always looking for entrepreneurs and technology trading companies that can bolster existing operations or contribute with new product or market segments where the conditions are right for taking the lead in niche positions.
Acquisitions for further development
Addtech acquires companies in order to maintain and evolve them in the long term. The new companies contribute with a presence on new sub-markets, supplementary agents and suppliers and, perhaps most importantly, skilled employees with a strong entrepreneurial spirit. On the other hand, Addtech is able to make a contribution as a financially robust, well-established and committed owner with clear goals for growth and profitability.
Comprehensive experience of corporate acquisitions
Over the years Addtech has acquired and integrated several companies in the Group, and through these experiences, a clear, successful process for integrating and evolving the companies acquired has emerged.
According to the Addtech model the route to a successful acquisition for both buyer and seller is not always the shortest one. The process may well take several years, giving the parties time to become well acquainted with each other before the deal is closed. This acquisition process minimises the risk of misunderstandings or false expectations. Also, it lays the foundations for trust and for the parties and key personnel to be satisfied with the outcome.
Each acquisition process involves the company being evaluated in a number of areas, and all acquisitions made involve the seller gaining confidence in Addtech and the company meeting Addtech’s key acquisition critieria, which are as follows:
• Profitable and well managed
• Offers a high level of expertise and technical content
• Adds value for customers
• Well-evolved relationships with suppliers, which are maintained after the sale to Addtech
• Sales made chiefly through personal contacts with customers
• Market-leading, or has the potential to become market-leading in conjunction with existing Group companies, in a well-defined niche
• Boosts Addtech’s potential for growth and profitability
When these criteria are met, there is a sound basis for further development within Addtech; the company acquired is also expected to contribute to the Group’s profitability in the short and long term and have good prospects for growth. As a rule, Addtech’s subsidiaries are wholly owned.
ATTRACTIVE AND EXCITING WORKPLACE
Addtech is an attractive owner for family companies run by entrepreneurs who wish to see the company continue to operate in the future. In Addtech, the entrepreneur and seller find a buyer that wishes to maintain the company’s identity and develop the business in the long term. Any commercial integration with fellow subsidiaries takes place within the business units. The possibility of benefiting from shared support functions is one of the most common reasons for collaboration. A sense of community and affiliation usually grows as employees become involved in Addtech’s internal networks.
Addtech prefers previous owners and senior executives to continue to play an active role in the company’s operations. The independent position of subsidiaries leaves great scope for personal involvement and entrepreneurship. A large number of genuine entrepreneurs continue to thrive and develop within the Addtech Group for exactly this reason.
SUPPLEMENT AND GRADUALLY EVOLVE
Addtech’s focus on niche areas is clear in the division into various business units that fall under the respective business areas. Entrepreneurs interested in selling their companies to Addtech often see a natural position for their companies within the Group structure.
Future acquisitions will primarily be made within the framework of existing operations. However, the market is constantly changing, providing opportunities for developing new business units or even new business areas, while Addtech gradually moves forward its positions.