EQT has invested in a wide range of companies and made a large number of successful divestments. EQT’s success is based on its value-building process of industrial acceleration, creating sustainable value and attractive risk-adjusted returns on investments.
More than 75% of the value created in the companies sold in the EQT funds can be attributed to operational improvements and top-line growth. Some examples of key measures:
- Sales growth – increasing sales through organic growth and acquisitions
- Operational excellence, improving margins and efficiency – increased efficiency and profitability. We install state-of-the-art benchmarking and assessment methods
- Strategic repositioning – utilizing changing industry dynamics, investing in future technologies and divesting non-core businesses, to create a strong base for rapid expansion
- Market and production expansion – targeting new customer groups or broadening the product offering which could mean new products in existing categories or applying a proven technology to new product categories or uses
- Internationalization – key benefi t of EQT ownership, given our extensive international network
- Bolt-on acquisitions – expanding the company step-by-
step by acquiring competitors or companies with similar or
complementary products, technologies or market presence
- Optimizing capital structure – creating efficient capital structures and,
ultimately, prepare the improved company for sale to its potential owner
EQT always has a strategy for developing and creating value in the acquired companies. The strategic plan is usually geared towards creating growth. This is illustrated by the fact that during the EQT Equity funds' ownership, the portfolio companies have annually, on average, increased sales by 11%, the number of employees by 12% and earnings by 17%.
Before becoming owners, EQT ensures that the management shares EQT's view on how to move the company forward. Consensus on strategic direction is a prerequisite, since a cornerstone in the ownership model is to retain and partner with management to transform the companies in which EQT invests.