Strategy for growth

More about the strategy


Enlarge image(pdf)

  • Beijer Alma owns and develops unlisted companies, usually as 100-percent owner. This is how the Group differs from traditional investment companies, whose holdings primarily comprise other listed companies. Beijer Alma’s long-term ownership philosophy also distinguishes the Group from private equity players. 
  • This approach gives investors access to a unique group of established, unlisted subsidiaries in attractive growth areas.
  • Access to the capital market provides financial resources for growth. The Group structure enables Beijer Alma to finance development and growth in a manner that otherwise would not be possible – particularly since the individual Group companies are probably too small to be listed on the stock exchange.
  • Value creation within Beijer Alma has resulted in a clear surplus return. From 2000 to 2008, the average return on shareholders’ equity was 15.7 percent annually. Compared with risk-free interest returns, such as 10-year government bonds, this means that the Group has generated a surplus return of 11.2 percent annually.

Operational control

Beijer Alma works closely with the Group companies to set goals, follow up and exercise long-term control. This cooperation does not involve operational activities, but instead focuses on strategic development, acquisitions and investments, thereby providing the Group companies with access to management resources that mid-sized companies often lack.

 

Long-term ownership

The concept of a long-term approach is key to Beijer Alma’s ownership strategy. The Group companies are not developed with the aim of a future exit.
Instead, the goal is to create groups of companies with industrially sound structures that achieve long-term success and in which the rate of growth and
profitability is high.

 

High customer value

Most of the Group companies’ products are adapted to meet specific customer needs, which creates higher value for our customers. Unlike standardized
volume products, unique product concepts provide greater freedom in terms of sales and marketing.

 

International market coverage

The Group companies primarily focus on niche products that are manufactured in small series and generate high customer value. To achieve growth with this type of product, the companies must have broad international sales.

 

High market share

Quality, breadth of product range and a high level of customization enable strong market positions. This allows the Group companies to compete by offering added value in addition to low prices.

 

Diversified customer base

Beijer Alma strives to achieve a broad customer base, which reduces the
Group’s risk and its dependency on individual geographic markets, industries
and companies.

 

Organic growth

Organic growth involves making continuous investments in product and market development. Beijer Alma prioritizes this type of growth since it often generates high quality and low risk. Organic development also enables existing organizations to be utilized while focusing work on markets and products that are familiar to the Group.

 

Corporate acquisitions

Corporate acquisitions can refer to new operations as well as acquisitions that supplement existing subsidiaries. Supplementary acquisitions strengthen the Group in selected markets or specific technological areas. The risk involved in supplementary acquisitions is also lower since  these acquisitions are performed in familiar markets or product areas.

 

Profitable growth

The main goal of Beijer Alma’s operations is growth, which ensures long-term expansion and development. For this goal to be considered fulfilled, growth must be combined with sustainable profitability. This is achieved in various ways – for example, through work on products with high customer value or investments in international sales. Beijer Alma contributes strategy work, business control and investment assistance to promote the profitable growth of its subsidiaries.