Two successful company sales last six months

Being a board professional is an exciting and dynamic occupation, as the aim of the assignment from time to time is to sell the company, and handover the board responsibility to the new owners. Out of ten companies in my board portfolio, I have over the last six months experienced two successful company sales to other industrial players, which testify valuable companies with continued growth potential.

 

CDRator sold to Enghouse Systems

Most recently, the mobile billing software company CDRator A/S was sold to Enghouse Systems Limited that is a publicly traded Canadian based software and services company. Enghouse serves a number of distinct vertical markets through its three divisions, Interactive, Networks and Transportation, each developing and selling enterprise oriented applications software. CDRator is now part of the Networks division.

On March 3 2015, Enghouse Systems Limited announced that it has acquired CDRator A/S for a purchase price of approximately $23.0 million (net of acquired cash). CDRator’s annual revenue for fiscal 2014 was just over $20.0 million. CDRator has approximately 130 staff primarily based in Denmark who support their customer base in Europe, North America and Africa.

Having served on the board of CDRator A/S for five years, I am proud of this successful and promising exit. I wish both Enghouse Systems and CDRator’s management and staff the best of luck for their joint future.


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Private equity board trend shift from management to leadership?

Private equity governance has for years set the route for management professionalization with industrial advisors on their board teams. As any other business, they however also from time to time experience that even the best plans fail due to lack of execution skills for which leadership is key. Thus, a leadership advisor approach may be maturing as a supplement to their classical industry advisor approach – what do you think?

 

 Leadership Board Trend

 

Clear trend on board professionalization and competent teams

Private equity funds have long been at the forefront when it comes to professionalization and composition of board teams based on business challenges and competence needs, rather than classical networking relationships. With a typical exit horizon of 4-7 years and clear ambitions to maximize value creation during the ownership period, it has been natural to introduce new management paradigms from top to bottom of the management systems.

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Get a professional board with focus on both ”know-what” and ”know-how”

The employees create value through the customers, but skilled owner-managers nevertheless find it difficult to get the good plans to actually take place. They are often buried in daily hands-on chores. Here, an active and professional board with wide leadership experience can provide a competency allowance for redemption of employees' full potential - even at reasonable prices. 

 

Leadership Board Trend

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Clear trend on board professionalization and competent teams

Private equity funds have long been at the forefront when it comes to professionalization and composition of board teams based on business challenges and competence needs, rather than classical networking relationships. 

 

BOD table grt

 

With a typical exit horizon at 4-7 years and clear ambitions to maximize value creation during the ownership period, it has been natural to introduce new management paradigms from top to bottom of the management systems.

Need for speed and skills

Examples of this are, when private equity funds already during the acquisition process have made extensive fact analysis, so they up front can set the right board and management team to execute the strategic and operational tasks as defined for the ownership period. Or they turn from comparing oneself with the nearest competitors to world class benchmarking, and long democratic decision making processes are replaced by short fact based decision making processes. Last but not least, their ability to handle large amounts of complexity under very tight deadlines.

With the right competencies on the board team, it is also natural and moreover fruitful, that boards engage more closely in management sparring and business development projects - of course with due regard to the principles and recommendations for good corporate governance.

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A value-creating PE-journey

Emballagegruppen sold to Schur

As at 14 August 2019 Schur International took over Emballagegruppen in Vejle from Maj Invest Equity. At the beginning of 2019, Maj Invest Equity acquired the family-owned company Good Food Group in Vejle, to which Emballagegruppen was affiliated as a 100% owned subsidiary until the transfer to Maj Invest Equity.

Emballagegruppen A/S which produces carton packaging and label products at two separate locations in Vejle, has a turnover of approx. DKK 180 million (EUR 25 million) and employs 130 people.

 

 


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Mads Middelboes Linkedin profil

Leadmore® · Mads Middelboe
Solvænget 17 · 2960 Rungsted Kyst · Denmark
CVR DK-31975409

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