IK

"IK’s headquarters differ from EQT’s, Nordic’s and Altor’s not only because the interior design and architecture are older and more grandiose, but also because there are more “tombstones” in the meeting rooms than at any of the competitors. These “tombstones,” which is a strange name, are a kind of glass trophy that are made after a deal. They stand as monuments to historical successes. But most of those who made the deals at IK are no longer there. Of those who were present during the early days, in 2013 there was only one person left besides the founder Björn Savén. And Savén has moved back to London."

"Savén took the largest share, two-thirds, arguing that he was the initiator. He also had the most money. Harald Mix and Kim Wahl shared the rest; throughout the journey, they had equally large stakes. Both Mix and Wahl took out loans to become co-owners of Industri Kapital (later IK Investment Partners, here called IK), as the company was named. It would turn out to be a brilliant investment."

"In 1993, IK opened its Swedish office on Birger Jarlsgatan in Stockholm, above the restaurant Riche. That same year, the firm made its first deal in Finland, the purchase of Kone Cranes, which almost fell through at the last moment."

"Lindex and Ellos were prime examples of so-called “corporate orphans,” companies whose owners—in these two cases, grocery giant ICA—had abandoned them to their fate. It was rewarding. Under IK, the strategy was developed, among other things, for Lindex to focus on children’s clothing, which became highly successful. Lindex was eventually listed on the stock exchange, and in 2007 was bought up again by the Finnish clothing chain Stockmann."

"It often takes months to reach an agreement on price and conditions; that’s the case in any business deal. Problems especially arise when conditions change during negotiations. One such thing can be that the buying party lowers its bid during the process. “Bait and switch” is the industry’s term for attracting the seller and then changing the offer. Then polite, suit-clad negotiators can quickly transform and end up screaming at each other. Another problem is if the buying party completely withdraws its bid. That is taboo, absolutely forbidden if you want market participants to have confidence, but that is what IK did in the autumn of 2000."

"In 1988, financier Gustaf Douglas and then-CEO of Securitas, later billionaire Melker Schörling, secured the first private contract in elderly care with their newly founded Svensk Hemservice. During the 1990s, the company went through several mergers and was eventually sold to become part of the healthcare group Attendo, which in 2013 was owned by IK. For a few years, Uppsala economist Peter Weiderman was CEO of Svensk Hemservice, and he then caught wind of the opportunities the care market offered. In 1996, with a total investment of SEK 15 million from Björn Savén, Harald Mix, and Kim Wahl, all at IK at the time, he started the healthcare company Carema. They could not let any of IK’s funds buy the company—it was too small an investment—but neither could they turn down what they perceived as a fantastic opportunity. And it was."

"What he means is that there has previously been a lack of large owners outside the stock market. And if a listed company succeeds in selling off divisions that do not belong to its core business, management can concentrate on what it does best and increase investment and profitability there. Experience shows that with the right owners, these sold divisions can develop and grow significantly more than they would have within the old group. But it is a matter of judgment what belongs to the core. Volvo sold its subsidiary Huskvarna’s sewing machines to IK, but diapers remained for the time being in SCA."