ACQUISITIONS

Acquisitions 

Acquisitions are an important part of AddLife's growth strategy and we have a well-established and structured process for identifying, acquiring, integrating and developing companies. The process prior to a new acquisition can last for several years. We want a close dialogue with the owners based on our basic values and decentralized management model. Prior to an acquisition, it is also important that we have an aligned vision for the company's future.

Identification
AddLife is constantly looking for interesting companies to acquire with a common ambition to grow and develop with us. New companies add new niche markets, presence in new geographical markets and/or supplement existing product and service offerings. We are looking for well-managed European life-science companies with a strong position in a niche market. The company must have good profitability, a sustainable business model and a corporate culture aligned with ours. We also see continued commitment from management and key personnel as an important criterion.
We have an ongoing selection of interesting new companies to potentially acquire through our network of own companies, a structured in-house search process, AddLife's network at various levels and from external business advisors and brokers. Establishing a close and exclusive dialogue with the company's owner early in the process is a key objective.

Evaluation
Once a potential acquisition target has been identified and both parties agree to continue the dialogue, the process enters an evaluation phase. Potential acquisitions are evaluated based on several criteria such as market position and brand, product offering, customers, well-established supplier relationships, product/industry knowledge and technological capability, competitors, ESG (sustainability), financial position as well as key personnel's leadership style and continued commitment. It is crucial that the business is conducted in a highly engaged and responsible manner to create long-term sustainable growth and profitability, thus also of great importance in the evaluation.

Transaction
In the transaction phase, we reach an agreement on a price that makes the deal create value for both parties. We usually use an acquisition structure with an additional contingent consideration, which means that part of the total purchase price is paid out if the company reaches a certain level of profitability after the acquisition. It is also important that the acquired company's most important suppliers and partners agree to the acquisition. The agreement culminates in a share purchase agreement and, after signing, the transaction is communicated in a press release.

Limited integration
In our decentralized business model, each company has its own responsibility for strategy and results and retains its own brand and identity. The business continues to operate independently with significant freedom with responsibility. The integration is thus relatively limited and mainly consists of the introduction of AddLife's model for financial governance and AddLife's corporate culture through training in AddLife's core values, code of conduct, financial goals and sustainability. In this way, the acquired companies maintain their entrepreneurial spirit and their customer and business focus and are not burdened by administrative processes and integration projects.

Active and value-creating ownership
By being part of AddLife, the acquired company gets a long-term owner with industry knowledge who supports management through an active and committed ownership. Financial stability, resources and tools are offered to make it easier and more efficient to develop and grow the business. AddLife also supports the companies by helping to appoint a board with skills adapted to the companies' size, segment and business context.