Focus on growing and profitable industrial technology companies with high margins.
- Business segment and company type. Focus on Nordic B2B industrial technology companies that are market leaders within their niche. We mainly evaluate acquiring product-owning companies, but are open for niche production companies with high underlying margins as well. We do not acquire pure distributors without proprietary products or systems.
- Historical financial and operational stability. Predictable sales and stable reoccurring cash flows make the acquired companies relatively resistant to economic downturns and commodity prices. The companies we evaluate have a turnover of between 50-350 MSEK and high profitability above 10% EBITA. We do not acquire carve-outs or companies without a stable financial history.
- Strong market position and sustainable competitive advantage. Can be characterized by high barriers to entry, low churn, and strong customer relationships. The product range should be characterized by a high degree of innovation and supported by technology development, but at the same time not be too R&D-intense.
- Ability to scale and multiple growth opportunities. Examples of growth factors are introducing new products, new customers, increased upsell, entering adjacent industries, and expanding into new geographies.
- Ownership. Karnell prefers to acquire entrepreneurial companies and has the ambition to be active both operationally and on the board. We only acquire majority positions, and we prefer to have at least 90% ownership over time. We encourage the entrepreneur to retain ownership after the acquisition.
- Strong management team. The ideal management team has industry experience, a solid track record and works well as a team.
- Low investment requirements. Companies with low investment requirements tie up less capital giving the management more flexibility regarding the distribution of capital.
The business area product companies includes companies with a unique product offering and which are characterized by a certain technical height. The product range is aimed at corporate customers in various industrial niches and markets. Karnell Group’s product companies have a variety of qualities, including solid margins, high barriers to entry in their respective niches and markets, and scalable platforms that enable expansion of the business through potential add-on acquisitions, broadened product offerings to existing customers as well as geographical expansion. Karnell focuses primarily on product companies within hardware, chemicals, and software within industrial technology, with corporate customers.
The business area niched manufacturers include companies that focus on niche value-added industrial production. The group companies are market leaders or hold a significant share of the market in their respective manufacturing areas and niches. Karnell focuses on production companies that are specialists in the manufacturing area in which the business operates and where manufacturing contributes to clear value improvements for the customer. This contributes to entry barriers and competitive advantages for the group companies that can create value for Karnell in the long term.
”In Karnell we get a strong strategic and financial partner to strengthen our market position further”– Mikko autio, CEO AT KL Mechanics
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