Vaaka Model

 

Creating opportunities

 

We are systematically analysing different industries and companies in order to create new opportunities. Our success is based on the systematic strategy work, networks and our proprietary LOUHI-database. We create a vision for the industry and look for one or several companies to be the core of the vision. In addition to our own direct contacts, our networks produce a significant number of contacts to us directly from e.g., management teamsies, company owners, and investment banks.

 

Our own team in co-operation with our industrial advisors puts significant resources in building an industry vision and the growth strategy ahead of any deal. A deal team, consisting of two partners and an investment professional is responsible for the deal.

 

The sales of our target companies vary between 10 and 200 million euros and the projects between 10 and 100 million euros. We operate as the majority owner.

 

 

 

Building growth

 

Vaaka Partners supports its companies and their management on different levels. Our deal team has an active role in the Board of Directors and works as a sparring partner for the management. We can also assume more operational roles e.g., with regard to further add-on acquisitions or finance negotiations. We also support the management in our operational excellence seminars organized for our portfolio companies. In the seminars the management teams from our companies network and develop their approach to tackling the challenges of a growth strategy. We utilize our proven tools including the Vaaka Corporate Governance -model and Contingency plans in our work with the companies.

 

Our companies benefit from the joint growth strategy, additional resources, and financial flexibility in building the growth as well as the expertise through the Vaaka team, network and advisors.

 

 

 

Taking the next growth step

 

Like other private equity investors, Vaaka Partners is also a fixed-term owner in the line with the fund structures. This decades old model has been very effective in creating results in a reasonable time frame. Typically the growth strategy of a company is created for five years, and thus the average holding period for our companies is around five years. On the other hand, some of our companies have been in our ownership for as long as ten years. The baton of growth is passed on to the new owner typically when moving on to the next growth strategy period.

 

Our philosophy is based on very long-term development of our companies, and we are delighted to see the continued success of our companies such as Reima and Musti ja Mirri under a new ownership.

 

The industry vision and our strategic thinking extends well beyond the strategy period itself, and we invest e.g., in long-term market position, product and service development. We support the next growth steps also by assessing potential owners for the next growth period already as a part of the industry vision. This way we make sure our companies have the best support and success now as well as in the future.