Investment strategy - Ratos
MENU
Menu
Share 2018-08-16 17:29 RATOS B 33.20 SEK

Investment strategy

Ratos's focus and goal as an active owner is to contribute to the long-term and sustainable operational development of its companies.

Investment strategy

Ratos invests mainly in unlisted medium-sized Nordic enterprises with clear development potential. The enterprises should have an established business model through which Ratos and the companies can together identify and then realise potential.

Holding and investment interval
Normally, Ratos is the largest owner in the companies, but we can also have a minority holding. However, our constant ambition is to be a committed owner that takes part in and can influence the companies’ development. We gladly co-invest with entrepreneurs and other stakeholders, but have a minimum holding of 20%. The goal for new acquisitions is that the company in question must have a minimum growth potential of SEK 0.5 billion in equity value over the next five years. The upper investment interval is SEK 2 billion in equity value.

Geographic focus
Ratos invests in enterprises that are headquartered in the Nordic region. Many of our companies already have a strong international footprint. No geographic limits exist for add-on acquisitions to our companies.

Sector independent
Ratos develops companies through active ownership. Independent of sector, we lend the innovativeness, experience, expertise, contacts and capital needed to realise the potential of our companies.

Selection process
Ratos focuses on self-generated transactions. We focus our acquisition efforts on six sectors: consumer goods/ commerce, construction, industrials, technology/telecom/ media, business services and healthcare. Our investment organisation identifies and analyses companies with potential for growth that suit Ratos’s portfolio of companies. We also take part in processes driven by investment banks and other advisors.

Ownership horizon
Ratos has a flexible ownership horizon with no limits to its holding period. The companies’ return potential and Ratos’s ability to contribute to their development is continuously assessed. Ratos can retain its holding as long as value is created in the company that exceeds the return target, which is often for a five-to-ten-year period.