Ratos's business model

Ratos invests in Nordic companies with a clear development potential. Our core expertise as an active and responsible owner creates good value growth over time. Value is created in connection with acquisition, development and divestment of the companies.

Acquisitions

A central acquisitions team at Ratos is responsible for evaluating and carrying out new acquisitions. We also work with industrial advisors who lend sector expertise and support our acquisition work by evaluating the investment themes and specific acquisition opportunities. Acquisition ideas are often discussed directly with other owners and entrepreneurs who are looking for a new partner to realise their visions. It is not uncommon for companies and themes to be pursued over an extended period. Direct contact is established with the owners and management of interesting companies, which we sometimes monitor for several years, even in situations where they are not ready for a new partner/owner.

In addition to the company meeting Ratos’s investment criteria and there being clear potential for growth and profitability, we create the optimum capital structure in the acquired company to support the company’s operational and transformative development.

Development

Ratos’s target as an owner is to create long-term value in our companies, focusing on improved profitability and sales growth, on an ongoing and transformative basis. Together with each company’s executive management, we establish the companies’ strategies, and we are clear in our demands and serve as facilitators to ensure they are implemented and produce the desired results.

As an active owner, we lend the innovativeness, experience, expertise, contacts and capital needed by the companies in which we invest.

We help recruit key people and supply capital that enables the companies to invest in product development, improved customer offerings and inroads in new markets. We offer a far-reaching network that can share best practices and new ideas for long-term company development. Active ownership may even entail making add-on acquisitions that provide revenue and cost synergies, or investments in new production technology to improve effectiveness and productivity.

Divestment

We retain our companies as long as we consider ourselves to be the best owner and as long as it generates shareholder value for Ratos.