Acquisitions as a driving force of long-term and profitable growth

Identification

AddLife continuously looks for well‑established and profitable European Life Science companies to acquire, that want to continue developing as part of the AddLife family. New companies can add new market niches, presence in new geographic markets and/or complement the existing product and service offering. Preferably, the companies are small or medium‑sized with good profitability, have a robust business model and a corporate culture in line with AddLife’s, as well as a strong position in selected segments and geographies. Continued commitment from management and key individuals is also an important criterion.

AddLife has a continuous inflow of new interesting and attractive acquisition candidates, primarily through AddLife’s network of subsidiaries as well as through the Group’s own structured search process. Initial contact with potential acquisition candidates also sometimes takes place via external corporate advisers and brokers. The ambition is to enter into a close and exclusive dialogue with the company’s owners at an early stage of the process.

Evaluation

When a potential acquisition candidate has been identified and both parties agree to continue the dialogue, the process enters an evaluation phase. Potential acquisitions are evaluated based on a number 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 commitment of key individuals. The way in which the business is conducted – with commitment and responsibility – is crucial to creating long‑term sustainable growth and profitability, and is therefore of great importance in the evaluation.

Limited integration

Within AddLife’s decentralised business model, each company is responsible for its own strategy and earnings and retains its brand and identity. Operations are conducted independently and with considerable freedom with responsibility. Integration is therefore relatively limited and mainly consists of implementing AddLife’s model for financial management and AddLife’s corporate culture through training in AddLife’s core values, Code of Conduct, financial targets 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. With this limited integration, the focus on customers and business is maintained, and acquisition processes can also be handled more efficiently.

Continuous development

In line with AddLife’s ambition to continuously develop, evaluation and improvement are a natural part of our acquisition process. After the process has been completed, regardless of whether the acquisition has been carried out or not, all parties involved are invited to discuss strengths and potential areas for improvement. For completed acquisitions, representatives from the acquisition candidate are also included. The evaluation also includes thorough financial follow‑up to ensure that the acquired companies develop in line with expectations.

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 committed ownership. Financial stability, resources and tools are provided that make it easier and more efficient to develop the business. AddLife also supports the companies by appointing a Board of Directors with expertise adapted to the companies’ size, segment and business situation.