1. Ownership and governance
One of Ratos’s foremost priorities as owner is to appoint the right CEO and executive management in each portfolio company. Each portfolio company’s management has clear and complete operational mandate and responsibility. A close collaboration between the executive management and Ratos’s owner executive is established through an agreed long-term plan, and defined value-creating initiatives are followed up regularly.
The CEO and executive management of the portfolio companies are offered incentives for value creation in the company in order to foster a sense of responsibility and a situation in which each company’s CEO and management can benefit from the company’s success.
A distinct and transparent structure for corporate governance is introduced in the companies in which we invest. In terms of the composition of the board, we apply what we feel will generate the most value for each company, which may mean that Ratos itself assumes the role of board chairman, or that the board chairman is recruited externally. The size of the board is also determined from company to company.
In addition to the board work that we perform in our companies, we work with teams made up of the CEO, board chairman and Ratos’s owner executive that effectively prepare central issues and accelerate rapid decision-making and activities in each company.
2. Basic requisites for creating long-term value
Ratos applies a number of basic requirements, which we refer to as the Ratos Basics, and ensures compliance with these requirements within the companies. These are built on:
Clear profitability management of the company and thereby a deep understanding of the company’s profitability-based key figures.
Competitive benchmarking against their competitors in order to understand the company’s sector-related results and what, from a results perspective, can be deemed “best in class”.
Customer satisfaction and the ability to understand and promote the attractiveness of the company’s offering from a long-term perspective.
Personnel development and incentives to attract, retain and develop personnel and managers. Ratos’s companies are to put a premium on developing talent and working to create the best prerequisites for their employees.
3. Tool box
Ratos’s organisation contains experience accumulated in such areas as strategy processes, business analysis, acquiring and divesting companies, financing, accounting, law, communication and purchasing/sourcing, which contributes to the companies’ development. We have a number of industrial advisors associated with Ratos. They lend their expertise in operational development and transactions. We also provide functional contacts between portfolio companies to enhance the intercompany benefits of being part of a large group.