Value Creation
We support and improve the priorities and operations of companies in partnership with existing owners and management.
How we create value
Inherent in the Explore partnership investing approach is a deep and continuous focus on value creation through operational and strategic levers. This is done through board work and by actively engaging in the development of the company as a partner and advisor. We do not burden our companies with excessive debt, hence reduced risk which enable portfolio companies to remain nimble. Our competitive advantage is based on specialized sector insights, deep stakeholder alignment and change management experience, and an extensive network throughout the Nordics and globally.
A common vision must be shared with existing owners and management before Explore invests in a company. Together with the partners, we seek to develop an operational value creation plan prior to the completion of any transaction. This plan is typically centred around three key pillars:
Market & turnover growth
Short-to medium term initiatives to drive top-line growth including geographical, channel and product expansion, and M&A initiatives.
Operational efficiency
Shorter-term improvements to existing business model, including initiatives related to governance structure, systems and capabilities, commercial processes and pricing, efficiency, and balance sheet optimisation.
Business model re-invention
Longer-term initiatives to establish enhanced business models leveraging underlying value chain shifts and new customer needs and demands.
Companies we search for
We target investments in small and mid-cap founder, professional partnerships, family and public companies within the Nordic region. The companies should operate in attractive industry niches supported by resilient underlying growth, high barriers to entry, limited exposure to exogenous factors and rational industry conduct, and have the potential to remain or become a top-three leader in its niche over time. Revenues should be in the range 150-1000 MNOK. We have a value-oriented investment philosophy and focus on microeconomic situations as opposed to macroeconomic factors. While we are sector agnostic, we believe the collective experience of the Explore team is particularly valuable in the high-end services, financial services, consumer goods, and industrials sectors.