Profitability first
Focus lies on streamlining operations by improving customer and product mix, reducing costs and increasing working capital efficiency. Revenue growth is not prioritised.
Our strategy is based on active, long-term ownership, combining the agility of a small business with access to practical support and guidance.
The foundation of our acquisition strategy is to acquire highly profitable companies with strong growth potential. For our existing companies, we use what we call our Focus Model to actively manage capital allocation. To clarify the model and ensure it gains traction, 25 percent of the Group’s employees have participated in our Business School, where they have been trained to use the Focus Model to make profitable decisions in their daily work.
The earnings growth potential of the companies is assessed based on underlying market development and their competitive positions in each market. All companies are aware of which category they belong to and set their priorities accordingly.
Focus lies on streamlining operations by improving customer and product mix, reducing costs and increasing working capital efficiency. Revenue growth is not prioritised.
Selective investments in growth are made in areas with high profitability but the primary focus is on streamlining to achieve the desired level of profitability.
Companies in this category are able to access capital for both organic growth and add-on acquisitions with the aim of scaling up their businesses.
The philosophy of “scaling up small-scale companies” creates the conditions for our subsidiaries to grow, with support tailored to their situation while preserving their operational freedom. We contribute our expertise through active board engagement to ensure efficient and responsible operational governance.
As an owner, we offer more than just financial strength. We create a home where entrepreneurial companies can maintain their individuality while continuing to develop with support from the Group. Our ability to combine active and long-term ownership with operational freedom makes us a natural choice for entrepreneurs seeking a stable foundation that allows their companies to grow.
We provide business support to our companies through the B&B toolbox, designed to improve profitability and overcome barriers to growth. The toolbox is based on seven distinct support mechanisms, enabling our companies to take a tailored approach. It offers structured support in several areas, including acquisitions, employee training, intra-Group exchange of experience, cost-efficient support functions that preserve independence, access to external experts with functional expertise, and professional governance.
Our Board of Directors are experienced individuals with seasoned industry know-how. The subsidiaries develop their own business plans based on jointly agreed annual and long-term targets, while retaining operational responsibility. Our companies work with annual targets rather than budgets, focusing on earnings and profitability in line with the Focus Model.
If companies lack in-house skills, we help them secure the right expertise at the right time. This may relate to areas such as pricing, marketing, exports and AI, and helps our companies to improve and strengthen key parts of their business more quickly.
We maintain a network of quality-assured external partners that provide services in accounting, IT and logistics. This gives our subsidiaries the opportunity, but not the obligation, to benefit from the scale and scope offered by these partners, which can increase quality and reduce costs.
Acquiring companies is a complex process, particularly for smaller businesses. We provide support to our companies throughout the entire process of carrying out an add-on acquisition – from identifying acquisition candidates to completing the transaction.
We have established hubs in key markets that give our companies access to back-office solutions, making it easier and more cost-efficient to establish a presence in new geographic markets.
Our internal “Bergman & Beving University” enables us to develop our employees by strengthening their skills and motivation, fostering contacts across the Group and providing them with the tools to understand our operational model.
We maintain internal networks where our companies share experiences in areas such as sustainability, AI, financial governance and leadership. The aim is to strengthen our employees’ skills while creating a forum for knowledge sharing and collaboration across the Group.
Interested in learning more about us and our acquisition process? We help entreprenuers take their business to the next level.