Accent Equity Partners AB has throughout the years developed a model for recommending companies with headquarters in the Nordic region to the funds it advises. The key objective is to add value in one or several stages of the 3E investment process (enter, enhance and exit). The process entails finding companies at attractive valuations by identifying opportunities with limited competition, focusing on enhancing equity value through active ownership and proactively guiding and developing the funds’ investments towards exits.
Accent Equity Partners AB seeks investment opportunities at attractive valuations where it is possible to secure the support of company management early in the process, become the vendor’s preferred purchaser, identify unique deal premises, identify value shifts in the market and analyse the timing of individual transactions.
Accent Equity Partners AB targets investment opportunities where potential for enhancement and thus value creation in the following areas:
Revenue growth – Organic growth through e.g. improved business models focused on targeting new customers, improving pricing strategies or entering new markets. Organic growth may be combined with selective acquisitive growth opportunities where Accent Equity Partners AB will help source, execute and integrate.
Operational efficiency – Margin expansion and capital efficiency improvements at all levels of the company’s operations. Performance is benchmarked against peers to identify sources of underperformance. Where appropriate, Accent Equity Partners AB will seek to provide tools for improved financial control, implement working capital improvement programs, rationalise product lines, evaluate supply chains and refocus R & D efforts.
Strategic position – Refocusing of internal resources, refinement of existing business models, growth enhancement and repositioning of the company in order to create market leadership. Many companies in the mid-market, especially non-core business units of larger companies, have not had the opportunity or incentives to optimise their strategic position.
Accent Equity Partners AB proactively monitors, guides and assists fund investments towards their exits. Full valuations for operational and strategic improvements are obtained via well-prepared, controlled and professional exit processes. The preferred exit routes for the Accent Funds’ portfolio companies are trade sales to strategic buyers. Well-positioned and professionally managed companies are often attractive prospects for strategic buyers seeking to grow through acquisitions and secure access to the Nordic market. The exit dynamics in the lower mid-market can generate significant premiums.