AddLife

Strategic Concepts & Mechanics

Identity & CultureCross-Pollination Without Centralization

Relationship LeveragePermanent Home Pitch to Entrepreneurs

Operating PrincipleIntervention Only at Deviation

Cornerstone MoveLet Sellers Keep Skin in the Game

Signature MoveGroup Managers as Mini-CEOs Chairing 15-20 Companies

Signature MoveWrite Down Receivables to Zero at 30 Days

Strategic PatternSpecialize Deeper Not Broader

Capital StrategyEight-Times-EBITA Ceiling as Deal Discipline

Signature MoveZero HR People for 6,000 Employees

Risk DoctrineFourteen Years Private to Build the Machine

Competitive AdvantageSmall and Mission-Critical Beats Large and Visible

Cornerstone MoveOne Sheet of Paper Into the CEO Chair

Cornerstone MoveFlee the Swedish Bidding War

Cornerstone MoveDental Company to Demolition Robot Empire

Capital StrategySelf-Funded Acquisitions, Zero Share Dilution

Signature MoveShortest Conference Calls in Sweden

Signature MoveNo CEO Job Without Running a Subsidiary First

Primary Evidence

"It led to the acquisition of Bergman & Beving’s MediTech business, a Nordic distributor of instruments and consumables in the life science sector. MediTech, with roots in Bergman & Beving going back to 1941, provided Addtech with steady, non-cyclical cash flows, and it operated with a decentralized structure. It was a relatively low-risk addition to the portfolio, despite accounting for around 25% of revenue. Roger Bergqvist was very disciplined on price and only paid a 6.5× earnings multiple. When the life science division was later spun off as AddLife in March 2016, it was listed at a market capitalization of nearly SEK 2.1bn ($210m). For Addtech shareholders, this translated into an 11× return over only 11 years—an impressive 28% CAGR."

Source:The Compounders

"Addtech has outperformed AddLife shares, appreciating almost 1,250% compared to 690% for AddLife—both beating the broader Swedish index by a…"

Source:The Compounders

Appears In Volumes

The Compounders