ACQUISITIONS

Acquisitions

Acquisitions are a key aspect of AddLife's growth strategy and we have a well-established and structured process for identifying, acquiring, integrating and developing companies. The new acquisition process can take several years. We encourage close dialogue with entrepreneurs over the long term, based on our core values and decentralised governance model. Prior to any acquisition, a common vision and plan for the future of the company is formulated.

Identification
AddLife constantly seeks to acquire well-established and profitable European Life Science companies that want to continue to develop as part of the AddLife family. New companies can contribute new market niches, a presence in new geographical markets and/or complement existing product and service offerings. Preferred candidates are small or medium-sized companies with good profitability, a sustainable business model and a corporate culture in line with AddLife's, as well as a strong position in selected segments and geographic regions. Another important criterion is the continued involvement of management and key personnel.
AddLife has a continuous inflow of new interesting and attractive acquisition targets, partly through AddLife's network of subsidiaries, partly through the company's own structured search process, and partly through external business advisors and brokers. The aim is to establish a close and exclusive dialogue with the company's owners early in the process.

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 a variety of criteria such as market position and brand, product offering, customers, well-established supplier relationships, knowledge and technology content, competitors, ESG parameters, financial position, and the leadership and continued involvement of key individuals. Conducting business in a committed and responsible manner is essential for achieving sustainable long-term growth and profitability, making it a critical factor in the evaluation process.

Transaction
In the transaction phase, AddLife and the acquisition target 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 AddLife’s decentralised business model, each company has its own responsibility for its strategy and performance and retains its brand and identity. The business continues to operate independently with significant freedom with responsibility. 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, while avoiding the burden of administrative processes and integration projects.

Continuous development
As part of AddLife's commitment to continuous development, evaluation and improvement are integral to our acquisition process. At the end of the process, regardless of whether the acquisition reaches completion, meetings are held to address the lessons of the process. All involved parties are invited to discuss strengths and potential areas for improvement. For completed acquisitions, representatives from the acquisition target also participate. The evaluation also includes close financial monitoring to ensure that the acquisition targets are developing in line with expectations. 

Active and value-creating ownership
By becoming part of AddLife, the acquired company will have a long-term owner with industry expertise that supports the management through active and committed ownership. Financial stability, resources and tools are offered that make it easier and more efficient to grow the business. AddLife also provides support by appointing a board of directors with expertise adapted to the size, segment and business situation of the companies.