Business concept
Ratos’s business concept is to own and develop companies that are or can become market leaders. We have a distinct corporate culture and strategy – everything we do is based on our core values:
- Simplicity
- Speed in execution
- It’s All About People
Ratos enables independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas.
Investment strategy
Ratos strives to implement quick improvements in its companies but remains an owner with a long-term vision with a focus on sustainable profitability.
For new investments, we investigate the following factors and make the following adjustments:
PLATFORM ACQUISITIONS
- Market-leading companies, or companies with the opportunity to become market leaders with significant EBITA
- The company could be a necessary puzzle piece to consolidate a fragmented market and operate in an attractive and growing market
- High quality with a stable history
- Competent CEO and management that can contribute to the Ratos Group
ADJACENT ACQUISITIONS
- The acquisition was identified by Ratos
- The company operates in the same, or similar, industries to other Ratos-owned companies
- Distinct soft synergies
- Integration opportunities may exist with other Ratos companies, but are not necessary
ADD-ON ACQUISITIONS
- Acquisitions take place through decentralised processes that are conducted by the companies – Ratos’s management may assist with expertise and experience if necessary.
- The company is to contribute to the consolidation of an industry
- Attractive values and low risk
- Distinct cost and revenue synergies
Financial targets
EBITA GROWTH
- EBITA is to amount to at least SEK 3 billion by 2025.
LEVERAGE
- Net debt, excluding financial lease liabilities, in relation to EBITDA should normally range from 1.5 to 2.5x.
DIVIDEND PAYOUT RATIO
- The dividend payout ratio should amount to 30–50% of profit after tax attributable to owners of the parent, excluding capital gains and losses.
