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Serial acquisitions without synergies : a qualitative study on the Bergman & Beving sphereStanser, Theodor, Marken, Jakob January 2024 (has links)
The Bergman & Beving sphere is a group of Swedish companies that have been successfulduring the last decades as serial acquirers. This study examines how the Bergman & Bevingsphere operates and how management makes capital allocation decisions; this has beenexamined through interviews with key individuals and large owners within these companiesand has by that taken a qualitative approach to the research questions outlined.The business model of the Bergman & Beving sphere revolves around continuously acquiringniched companies, with a long track record of profitable growth and with a culture that alignswith that of their own. What distinguishes them from many serial acquirers is that they do nottry to integrate the acquired company into a bigger one and/or find synergies between them,but instead, they operate with a highly decentralized model where the companies actindependently. The group has for a long time used internal financial metrics, with theirtrademark metric being Profit/Working capital (P/WC), to guide their subsidiaries and aidmanagement in capital allocation decisions.
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