• ACQUISITION PROCESS

    • GETTING ACQUAINTED

    • The decision to hand your business legacy over to someone else is an often demanding and emotional process. Through our wide experience in industrial undertakings we know that for you to feel right about this process, it is vital for you to take your time. Without this time, you may easily regret your decision through the remainder of the process or, worse (to us who would like to see the old owners stay on in the company), that we disagree on what direction the company should take.

      Only when both parties are fully comfortable with each other’s values, intentions and visions for the future, we feel the conditions are met for a “happy marriage”.
In other words, it will take lots of coffee and long talks about views on business to make both parties feel safe. At this stage an indicative offer is made and, if we agree, we usually sign a simple Letter of Intent (LOI) to make both parties feel comfortable in carrying out the transaction.

    • ONE CLEAR PROCESS UP TO THE POINT OF TRANSACTION

    • Once you have made your decision, you want things to move fairly quickly, both for your staff and for yourself as the seller. At the same time, the process cannot be rushed through, as this could risk a situation where both parties lack sufficient knowledge and understanding. At Ernströmgruppen, we often insist on signing a Non-Disclosure Agreement (NDA) at an early stage, for you to feel safe about disclosing information about your company. With few exceptions, we generally conduct the Due Diligence (DD) ourselves, since we have been involved in the process from day one. We bring in outside expertise to assist with legal issues and other areas where we require additional competence. We would also recommend the seller to have a legal representative to provide assistance in the seller’s own language, should this be needed. At this stage the same lawyers will prepare a Share and Purchase Agreement (SPA) which is clear to both parties.

    • EXECUTION

    • At the point of transaction we will jointly inform about the agreement. The most sensitive part is generally the staff, but in our experience, there is rarely any drama once we have presented our business model and views. After all, it’s business as usual, and they also get an additional 600 Nordic colleagues to share knowledge with.

    • CONTINUED DEVELOPMENT

    • There is no denying that a change of owners will mean changes. Whether this change will turn out well depends on HOW it is handled.
To gather our collective experience, Ernströmgruppen has created a toolbox which is continuously developed. It contains tools to help leaders take their companies to the stage in terms of development – especially when it comes to work methods to improve efficiency.
As the newly acquired company becomes part of our structure, it will gain access to these tools.
      
Sometimes you will want (and need) to start working with the toolbox straight away, whereas there are times when it is better to wait. In most cases the newly acquired company will also contribute with new tools.
We are not perfect.