Söderlind

"Internally, he ensured the entire organization understood the seriousness of the new strategy, introducing the ambitious “500/ten/45” financial targets (SEK 500m in operating profit, 10% EBIT-margin and P/WC of at least 45%). The goal was clear: to reach these targets by the fiscal year ending in March 2026 and the P/WC target by the following year. At the time of writing, improvement is already evident: Söderlind has improved the P/WC ratio from 22% to 31%."

"Söderlind’s priorities centered on profitability. Drawing on an approach similar to the one used at Lagercrantz, he started by phasing out low-margin, high-volume products. The result was a gross margin increase from 41% to 47%, contributing to a substantial rise in operating profit. The strategy was clear: increase returns and make the company more resilient by diversifying into new niches. Acquisitions became a primary driver of growth, setting an ambitious target of adding SEK 50m–80m in EBITA annually. However, Söderlind deliberately targeted only financially strong companies with EBITA margins above 15% and solid growth potential. Since he took office, Söderlind has acquired more than 20 companies, all meeting these criteria."

"His track record was impeccable. He had spent 14 years at Lagercrantz as both deputy CEO and head of M&A, and played a pivotal role in transforming the company into a highly successful business. During his tenure at Lagercrantz, the company’s market capitalization grew from SEK 850m ($85m) to SEK 18bn ($1.8bn). At Lagercrantz, Söderlind specialized in acquiring high-margin companies with proprietary products that delivered strong returns. Over the course of his tenure, he demonstrated significant talent for making deals in the private market, leading more than 50 successful acquisitions."

"Beyond financial criteria, Söderlind’s plan was to focus on B2B companies with long histories, strong financial track records, and dominant positions in expanding niches. These companies are often asset-light, and when they grow, they produce a lot of cash flow. Companies have been acquired at multiples averaging 6–7× EBITA, demonstrating Söderlind’s discipline. But beyond numbers, the key is finding companies and leaders that align culturally with Bergman & Beving’s values, and want to stay committed post-acquisition."

"Söderlind’s commitment to increased profitability is unambiguous: all companies within the group must achieve a P/WC of 45% within 3–5 years. What you measure is what you get. To drive his point home, Söderlind revamped the incentive structure for managing directors. In a company with P/WC <25%, the bonuses are 80% tied to P/WC and 20% tied to Earnings Before Tax growth. The bonuses of the companies with a P/WC >45% are instead weighted 80% to profit growth and 20% to improving P/WC. This way, the bonus system is aligned with group capital allocation priorities."