Schouw & Co. has a dual-level strategic approach to investments. One set of criteria is used for bolt-on acquisitions to existing portfolio businesses, and one set is used for a potential new ‘leg’, i.e. a platform investment without synergies or matches to an existing business.
During 2006 to 2013 new platforms have not been actively on the agenda. Subsequently, the way was paved for the potential involvement of new businesses, however, capacity investments and bolt-on acquisitions to the existing businesses have always remained the highest priority.
Overall, the following principles have been defined:
The structure of Schouw & Co. entails that a realistic span of control is 5-7 businesses. Hence, it is therefore important that an addition to the portfolio is constituted by the correct business with a strong and long-term potential.
It is also important to emphasise that a deal flow is not an object in itself. Only if Schouw & Co. is no longer the best owner of a business, we should sell it.
Since 2014 two businesses have been added to the portfolio and one has been divested. Furthermore, several bolt-on acquisitions and capacity investments have been made, cf. the below.
