Entrepreneurs
An experienced buyer of entrepreneur-led companies
Acquisitions form a natural part of Eleda’s growth strategy, and we have acquired more than 40 companies since our inception, most of which were owned by entrepreneurs.
We believe that infrastructure development and maintenance is best served by strong local leaders, since they know the customers and market deeply, know the best local employees, and attract the most talented people in their respective local markets. A key aspect of being part of Eleda is therefore that our companies retain a large ownership share in the business after the acquisition. At the same time, they benefit from the advantages of belonging to a large Group that has a proven ability to manage and further develop owner-led companies, and receive support and tools from Eleda.
We buy companies that either offer access to new geographic markets, add new skills, or strengthen our position within existing geographies and areas of expertise. Acquisitions can either be made directly by Eleda or as add-on acquisitions to one of our platform companies.
We are selective and only buy companies if the business benefit of buying the company is deemed to be high. We have clearly defined acquisition criteria that are important in our choice of companies.
Our way of working
- Decentralization is the foundation of entrepreneurship and our success
- We are transparent and predictable. We proactively identify risks and problems and address them
- We focus our time and energy on the customer and the business
- We collaborate internally and with customers to identify new opportunities
- We develop strong employees
What do our leaders say?
What does it mean to be part of Eleda and how do our leaders view Eleda as an owner? Read three interviews with entrepreneurs who lead companies within the framework of Eleda’s platform.
Acquisition and post-acquisition process
The acquisition process is flexible, but follows an overall structure that is based on the different steps Identify, Negotiate, Acquisition process and Post-acquisition process. Our companies within the group take a very active role in all steps of the work with support from Eleda centrally.
We continuously analyze companies that have the potential to become new platform companies or complement our platform companies and where Eleda can contribute to expansion in existing and new markets.
Dialogues have been initiated with the companies that we have identified for exchanging experiences, identifying whether there are strategic advantages to being part of Eleda and whether we share values around long-term value creation. In the evaluation phase, we leverage the collective expertise that exists within Eleda and among our companies to ensure that we clearly understand all opportunities and risks.
Potential acquisitions are evaluated based on various parameters such as market position, customers, competitors, environmental impact, financial position, history, and the continued commitment of key individuals. It is crucial that the business is conducted in a responsible manner in order to promote long-term sustainable growth, development and profitability, meaning that it is central to the evaluation.
During the negotiation phase, the ambition is always that the transaction is to create value for both parties. It is usually crucial that key individuals remain involved after the acquisition. They are often co-owners of the company being acquired and, to ensure that financial incentives are available, an acquisition structure including earn-outs and payment in the form of shares in Eleda is usually used.
In connection with acquisitions, we follow a structured and proven model. The combination of our in-depth industrial expertise and solid experience of acquisitions means that we have every opportunity to navigate the acquisition process correctly and work effectively. In addition, we have a well-developed decision-making process that enables well-founded decisions and fast processes.
Our goal is always for acquired companies to combine the advantages of maintaining entrepreneurship with the well-proven governance and support that Eleda offers. Given our decentralized approach, integration is limited and low risk. Every company is different, and our post-acquisition approach is therefore flexible depending on the given situation.
During the initial period of ownership, our aim is to familiarize ourselves with the business and then to accelerate its growth organically and through M&A.
Following the acquisition, the acquired company will adopt Eleda’s well-proven governance model, including monthly reporting, forecasting, and budgeting. We will also implement Group-wide policies that have been developed specifically for Eleda companies for support. Furthermore, business plans, processes, and skills are reviewed. Support is available from peers in the Group or centrally as required, in order to accelerate growth.
Are you interested in selling your company, or do you want to know more about how we work? You are most welcome to contact us for an initial conversation that could be the first step on an exciting journey together with Eleda.