A defined strategy for engagement in economic growth
One of our advantages is the family ownership, which secures perspective and decisions in a short amount of time with active owners who are engaged in our company's portfolio.
Jon Pran is leading the investment company Katalysator, which invests in other businesses on behalf of Aars. He has been involved in the development of the company and their portfolio for 12 years now. Now, he and his team are going with a new strategy. “We've made up an ambitious growth plan where Aars too will grant Katalysator more funds for investments, says head of the board Morten Møller.
Our investments will focus on consumer oriented businesses, says Pran, who summarieses the new path towards 2020 in 4 main strategies. “We will increase our competence and capacity, we will change the deal flow, which will mean we will aim to get more investment objects, we will build a portfolio with bigger investments and improve our processes for economic growth. It's also important to us that we don't engage with companies where the main risks are outside of the owner's control, we like you can see in the oil business”
Katalysator will be the best investment environment in Norway when it comes to medium sized companies. “We are aiming towards an investment portfolio of 2 Billion Norwegian Kroner within 2020 and we have the power to make single investments up to 400 million Norwegian Kroner, says Pran, who emphasises that the potential for the companies in the portfolio will have a 50 million NOK (EBITDA) result within 3 years from the initial investment.
Traditionally Katalysator has always engaged with smaller businesses.
Some critical conditions with the new strategy are that the companies should have simple and understandable business models, with a complete leadership which has a keen interest in furthering the business. Morten Møller emphasises that the investments will create enthusiasm with Katalysator's leadership and owners, and that the companies will have economic growth and a culture which corresponds with the family's fundamental values.
Katalysators portfolio will be more focused, and we imagine that around eight companies will be the right amount of engagement. We do this at our own pace, as the goal is on average one new investment per year. The Katalysator team also has a rule of thumb that states that at least one of us should be genuinely interested in the products of the businesses we buy into, says Jon Pran, who is more than a little interested in sports and leisure.