Pension savings around the world keep capital flowing into private equity, and many funds focus on the Nordic market. Many of the clients Stratema works for follow a buy and build strategy: they acquire several companies in the same industry and build a larger group.
With a narrower path to the stock exchange, many keep building instead. According to Solvang, the rolups Stratema works with now typically aim for NOK 4 to 5 billion, compared with 2 to 3 billion before. Installation services (electrical, plumbing, ventilation) is a good example of this trend.
“In the Nordics today, more than 30 players are consolidating within installation. Just a few years ago, there were three or four,” says Solvang.
For Norwegian founders, this means more potential buyers and better prices than ten years ago. Many can afford to wait for a better price. At the same time, Solvang stresses that selling a company takes more than a bid. It starts with the market and the trends behind it, then the numbers, and finally the people involved.
“In construction, the balance sheet goes home for dinner. It is important that they return the day after,” says Solvang.
Read the full interview in Finansavisen (in Norwegian, subscription required)
We would be pleased to discuss your situation – whether it concerns a sale, acquisition or strategic considerations. Together, we can consider the opportunities, timing and next steps.
