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 leading up to a new acquisition can take several years. We aim for a long-term and close dialogue with entrepreneurs based on our core values and decentralised management model. Before an acquisition, a shared vision and plan for the company’s future are established.
Identification
AddLife continuously seeks well-established and profitable European life sciences companies to acquire—companies that want to continue their development as part of the AddLife family. New companies can add new market niches, establish a presence in new geographical markets, and/or complement existing product and service offerings. Preferably, the companies should be small or medium-sized with good profitability, a sustainable business model, a corporate culture aligned with AddLife’s, and a strong position in selected segments and geographies. Continued commitment from the management team and key personnel is also an important criterion.
AddLife maintains a steady inflow of new, interesting, and attractive acquisition targets, sourced through AddLife’s subsidiary network, its own structured search process, and external business advisors and brokers. The ambition is to establish an early and exclusive dialogue with the company’s owners during the process.
Evaluation
Once a potential acquisition target has been identified and both parties have agreed to continue discussions, the process enters an evaluation phase. Potential acquisitions are assessed based on various criteria, including market position and brand, product offering, customers, well-established supplier relationships, knowledge and technology content, competitors, ESG parameters, financial position, and the leadership and ongoing commitment of key personnel. Ensuring that the business operates in an engaged and responsible manner is crucial for creating sustainable long-term growth and profitability, making it a key focus of the evaluation.
Transaction
In the transaction phase, AddLife and the acquisition target agree on a valuation that ensures the deal is value-creating for both parties. We typically use an acquisition model with clear shared goals and an earn-out component, meaning that a portion of the purchase price is contingent on the company meeting profitability targets post-acquisition. It is also important that the acquired company’s key suppliers and business partners approve the acquisition. The agreement results in a transfer contract, and upon signing, the transaction is communicated through a press release.
Limited integration
In AddLife’s decentralised business model, each company is responsible for its strategy and results while retaining its brand and identity. The business continues to operate independently, with significant freedom under responsibility. Integration is, therefore, relatively limited and mainly consists of implementing AddLife’s financial management model, along with its corporate culture through training in AddLife’s core values, code of conduct, financial goals, and sustainability principles. In this way, the acquired companies retain their entrepreneurial spirit and their customer and business focus, without being burdened by administrative processes and integration projects.
Continuous development
In line with AddLife’s commitment to continuous development, evaluation and improvement are natural parts of our acquisition process. After each completed process—whether or not the acquisition was finalised—meetings are held to identify key learnings. All involved parties are invited to discuss strengths and potential areas for improvement. In the case of completed acquisitions, representatives from the acquired company are also included. The evaluation process also involves rigorous financial follow-up to ensure that the acquisitions develop as expected.
Active and value-creating ownership
By becoming part of AddLife, the acquired company gains a long-term owner with industry expertise that supports management through active and engaged ownership. Financial stability, resources, and tools are provided to facilitate and enhance business development. AddLife also supports its companies by appointing a board with expertise tailored to the company’s size, segment, and business situation.
HEPRO - INNOVATIVE AND SUSTAINABLE SOLUTIONS FOR ALL STAGES IN LIFEHepro designs and manufactures high-quality products for all age groups, from infants to the elderly, to promote independence, safety, and social engagement. Their offerings include aids for crawling, swimming, mobility, and participation. Since joining AddLife, Hepro has doubled its revenue and expanded its global reach.