The share as an investment
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. Stable and profitable growth
Our growth strategy creates sustainable and profitable earnings growth, where everything we do is to ultimately lead to increased profit per share. We have a clear target to increase our EBITA by at least 15 per cent per year. We have exceeded this target since the listing in 2022 through a combination of organic growth and value-adding acquisitions, and profit per share has increased.
2. Proven ability to acquire and develop operations
Momentum Group has a documented ability to create value through acquisitions and business development. With a long history in the industrial sector and a background from successful companies such as Bergman
& Beving, Addtech och Lagercrantz, we have built up an effective model for identifying, acquiring and refining profitable companies with strong market positions. Through our “better than yesterday” philosophy, we work continuously to strengthen our companies and, together with their management teams, drive profitable growth.
3. Decentralised business model
Our decentralised business model combines local entrepreneurship with the Group’s financial resources, strategic support and wide network. 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. By making decisions close to the customer and to suppliers, companies can quickly adapt to changes and opportunities in the market. This independence, in combination with the Group’s active ownership and efficient corporate governance, ensures long-term stability and value creation.
4. Acquisition-driven growth in a fragmented market
The Nordic market for industrial components and services is fragmented, with significant opportunities for consolidation and growth through acquisitions. Our model is based on identifying and developing niche companies with unique offerings and strong market positions. Momentum Group has a long-standing history of successful acquisitions with well-proven processes for acquisitions as well as onboarding for this kind of company. Since the listing in March 2022, we have completed 23 successful acquisitions (December 2024), that further strengthen our position.
5. Resilient business model
With a significant share of our revenue attributable to aftermarket services, our assessment is that our business model is less sensitive to economic fluctuations, and with a large share of recurring revenue, we ensure a stable level of revenue. Our broad customer base and diverse industries and product segments also help create additional resilience.
6. Strong cash flows enable self-financed growth
Our growth strategy is based on strong cash flows that are generated by consistently focusing on profitability (EBITA/WC) across all operations. Together with a robust balance sheet and low capital requirements, we can finance our growth with our own funds – both through investments in existing operations and through acquisitions. This allows us to ensure financial stability and to deliver sustainable, long-term returns to our shareholders. 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.
