Acquisitions are an important part of AddLife's growth strategy
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 prior to a new acquisition can last for several years. It is imperative that we get to know the company and its management team at an early stage to determine whether the company is a good fit from an operational and financial perspective, but above all from a corporate cultural perspective. We want a close dialogue with the owners based on our basic values and decentralized management model. Prior to an acquisition, it is also important that we have an aligned vision for the company's future.
AddLife is constantly looking for interesting companies to acquire with a common ambition to grow and develop with us.
New companies add new niche markets, presence in new geographical markets and/or supplement existing product and service offerings. We are looking for well-managed European life-science companies with a strong position in a niche market. The company must have good profitability, a sustainable business model and a corporate culture aligned with ours. We also see continued commitment from management and key personnel as an important criterion.
We have an ongoing selection of interesting new companies to potentially acquire through our network of own companies, a structured in-house search process, AddLife's network at various levels and from external business advisors and brokers. Establishing a close and exclusive dialogue with the company's owner early in the process is a key objective.
In the transaction phase, we reach an agreement on a price that makes the deal create value for both parties. We usually use an acquisition structure with an additional contingent consideration, which means that part of the total purchase price is paid out if the company reaches a certain level of profitability after the acquisition. It is also important that the acquired company's most important suppliers and partners agree to the acquisition.
The agreement culminates in a share purchase agreement and, after signing, the transaction is communicated in a press release.
Active and value-creating ownership
By being part of AddLife, the acquired company gets a long-term owner with industry knowledge who supports management through an active and committed ownership. Financial stability, resources and tools are offered to make it easier and more efficient to develop and grow the business.
Through AddLife Academy, new companies are trained in AddLife's core values, code of conduct, financial goals and sustainability. Depending on the companies' specific needs and situation, specialized courses are also offered in different areas, for example sales and leadership.
When necessary, AddLife's finance function also supports the companies in business and profitability analysis and offers support and tools for profitability and process improvement as well as cash flow optimization.
AddLife supports the companies' business planning and strategy development and, with the help of investments and additional acquisitions, can actively support the companies in taking powerful steps in their business development.
Depending on the situation and needs, the companies are offered participation in several internal network initiatives. Within the framework of these initiatives, opportunities are offered for the exchange of experience and knowledge in specific areas such as new technologies, marketing and HR. In addition, several collaborative projects, often at the initiative of the portfolio companies, are being run across several countries. These collaborative projects can, for example, focus on the development of new products or on a coordinated offering to suppliers and customers in several countries.
AddLife also supports the companies by helping to appoint a board with skills adapted to the companies' size, segment and business context.