Acquisition process
Although each process is unique and tailored on a caseby- case basis to the specifics of the targets such as size, geography, and the acquisition target’s particular systems and operations, Norva24 generally proceeds with its acquisitions and subsequent integration through a standardized framework process. This process has been optimized over the past and tailored towards Norva24’s needs.
Due to this standardization, Norva24 can provide high quality, swift decision making on targets and subsequent execution of transactions. During the acquisition process, Norva24 works to build a relationship with the target management and owners, secure the best terms for the transaction, and complete a thorough due diligence. During the acquisition process Norva24 and the sellers also work on the integration plan and set financial targets for the coming period. The transparent process helps to facilitate this as well and allows for clear communication throughout the process, which is particularly important, as targets’ management remains within Norva24 group after the transaction.
Integration of acquired companies, with value creation and extraction of synergies Following the completion of the acquisition, Norva24 has an established framework for integration. The approach to integrate newly acquired targets is supported by Norva24’s IT network within Norway, Denmark, and Sweden. Generally, Norva24 attempts to integrate bolton acquisitions over a three-month timeframe, and new platform acquisitions over a six-month timeframe. Concurrently and following the integration process, Norva24 works to realize synergies in areas such as increasing utilization, sharing best practices, expanding services, shared IT-platform, bid management support and centralizing relevant procurement. Financially, these synergies are realized in revenue growth, margin expansion and cost saving.
The integration process of an acquired target typically starts after the completion of the acquisition process, while the planning is done in cooperation with the acquired target during the acquisition process. For Norva24, the primary objective of acquisitions is to achieve value creation through geographical diversification and expansion, leveraging Norva24’s best practices, introducing certain functions and processes coordinated at Norva24 or country level, and obtaining economies of scale and realizing synergies while at the same time preserving the local entrepreneurial spirit of the target.
