Focus areas
Momentum Group creates value by developing and acquiring successful sustainable companies in the Nordic region. Our proven model for acquisitions and business development, combined with active capital allocations, ensures that we find the right companies, strengthen them and deliver good returns to our shareholders.
1. Governance model
We have a clear focus on earnings growth and cash-flow generation, which are the core of our business model and financial targets. Subsidiary governance is based on three fundamental requirements: growth, profitability and development. Through our decentralised business model and clear target management, we support our companies in achieving their goals.
Growth
Growth for us is not just about increasing revenue but about creating sustainable and profitable earnings improvements. Our goal is for our companies to achieve at least 15 per cent annual earnings growth over a business cycle. This requires systematic work to increase revenue, improve margins and keep overheads under control.
Profitability
Profitability is the foundation of our development. We measure it as EBITA/WC (EBITA in relation to working capital), with a goal of at least 45 per cent for the Group as a whole and for each individual company. This high target allows us to finance our operations and expansion while providing good returns to our shareholders. Our focus on the profitability target of EBITA/WC ensures a focus on maintaining low and stable working capital within the subsidiaries.
Development
Our approach to business development is based on continuously developing and strengthening the companies’ service and product offerings, specifying requirements connected to business objectives, and working to ensure that the companies in the Group are able to prove that they are the best choice for customers. This is proven by the tangible industrial improvements that create added financial, environmental and work environment value for customers.
2. Focus model
We aim to achieve a return on work-ing capital (EBITA/WC) of at least 45 per cent. This applies both to the Group as a whole and to every subsidiary. To achieve this, we apply an internal focus model for capital allocation with clear priorities for our companies based on their return on working capital. The model is designed to ensure that resources are used efficiently and that all of the companies in the Group contribute to long-term sustainable value growth.
Our focus model for capital allocation
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EBITA/WC:
<25 %Subsidiaries focus primarily on improving their margins. This means a focus on streamlining operations, reducing costs and optimising processes to increase performance.
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EBITA/WC:
25-45 %The primary focus is still on margins, but there are also opportunities to work on growth – always maintaining cost control and a profit focus.
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EBITA/WC:
>45 %Mandate to focus on growth while maintaining high profitability. These companies have a proven business model and therefore have the opportunity to work with add-on acquisitions.
3. Business culture
Our business culture is based on simplicity, responsibility, the will to improve and trust. Our decentralised business model means that our companies have a great deal of freedom, alongside their own responsibility for earnings and profitability, which creates a culture of business acumen, commitment and efficiency. This independence, in combination with the Group’s active ownership and efficient corporate governance, ensures long-term stability and value creation.
Decentralised responsibility
- Freedom to independently lead, develop and improve the business operations of the individual company, or at various levels within the company, such as a region or a district.
- Clear, measurable targets linked to activities that are broken down to an individual level in annual performance reviews with each employee.
- An ability to make important business decisions close to customers and suppliers by competent employees with great personal responsibility.
“Better than yesterday”
- Every day, we should be slightly better than we were yesterday.
- Changes – that is to say, improvements – are to be enduring within Momentum Group.
- It is important for us to be able and willing to rapidly adapt to new conditions and challenges in a market that is constantly changing.
Simplicity
- Simplicity is to permeate our way of working.
- Simplicity is not about working quickly and carelessly, but rather working in a deliberate and concentrated manner.
- To us, simplicity is about simplifying problems and not becoming lost in a sea of details.
- Simplicity means that we value clear business models and offerings in our companies.
4. Sustainable offering
Our strategy for a sustainable customer offering is based on long-term partnerships, value-adding sales and a deep understanding of customer needs. By collaborating with market-leading suppliers of high-quality products and offering innovative solutions, we help our customers improve their productivity, optimise their processes and achieve their sustainability goals.
The customer’s best sustainable choice
Momentum Group’s companies work close to their customers to ensure that we always offer the most relevant and value-creating solutions.
By understanding customers’ specific needs and chal-lenges, we can deliver sustainable products and services that make their everyday lives easier, safer and more profitable. High availability, technical expertise and long-term relationships are central parts of our strategy. Our strong focus on selling expertise ensures that we deliver more than products – we also create added value through knowledge and advice.
Our industrial improvements
Industrial improvements is a method whereby, together with the customer, we document and quantify the value that our products and services create in terms of work environment, environmental impact and financial savings. By analysing the customer’s needs, presenting sustainable solutions and ensuring a common under-standing of the effects of the improvements, we produce tangible results. In some cases, all three sustainability parameters are affected, and in other cases one or two are impacted – but always with clear value created for the customer.
Partnerships with high-quality suppliers
To ensure that we can deliver a sustainable offering, Momentum Group bases its operations on long-term, responsible partnerships with market-leading suppliers of high-quality products. Our companies combine an in-depth understanding of local customer needs with an effective platform for reaching the Nordic market. This allows us to build strong partnerships that benefit the entire value chain. Through clear requirements, carefully selected suppliers and Code of Conduct compliance, we ensure that our partnerships retain a high level of quality and responsibility.
5. Acquisitions
Since the listing in March 2022, we have successfully completed 23 acquisitions (December 2024), which has helped us accumulate extensive experience of acquisition processes. Our proven model has become an effective framework for identifying, evaluating and executing acquisitions and successfully onboarding new companies. This foundation of experience strengthens our capacity to navigate the complexity of acquisitions and to ensure that each new company has the right conditions.
Outcome of acquisitions
Momentum Group’s own cash flow is an important pre-requisite for being able to make acquisitions. Together with a robust balance sheet and low capital requirements, our strong cash flows mean that we can finance our growth primarily with our own funds. To measure the degree of
self-financing, we use the reinvestment rate performance measure, which clearly reflects our ability to support growth with our own resources.
Reinvestment rate:
109%
Critical success factors
- Strong financial position with scope for acquisitions.
- Principal owner who wants to grow the Group.
- Industrial network in the Nordic region.
- Processes and resources in place for evaluating and implementing acquisitions.
- Proven and efficient acquisition model.
- Professional acquisition organisation.
