Investors > Boreo as an investment > Strategy and financial targets
Our roots are in the North and our company name Boreo mirrors both our cultural heritage and the location of our operations. Boreo – the former Yleiselektroniikka - creates value by owning, acquiring and developing B2B businesses in Northern Europe with a long-term perspective. Our key objectives are to be a best-in-class home for our companies and people and to create optimal conditions for our businesses to prosper. Boreo generates growth of earnings and sales via acquisitions and by developing its companies with a standardized operational excellence strategy. Our people and culture are in the core of what we do. We strive to create and maintain a sustainable corporate culture. For our suppliers we are an enabler of growth in the markets. We improve competitiveness of our customers by providing value adding products and services. Boreo is the place to Grow and Prosper.
Boreo targets to achieve its main strategic objective – shareholder value creation in the long-term - by way of deploying three strategies: ‘Acquisition strategy’, ‘Operational Excellence strategy’ and ‘People & Culture strategy’.
‘Acquisition strategy’ with a goal to create majority of the targeted sales and earnings growth, to diversify the Group through platform transactions to new industrial areas and geographies and to complement the existing Business Areas with add-on acquisitions.
‘Operational Excellence strategy’ with a goal to create organic growth and improve earnings by deploying group-wide adopted performance management processes and methodologies to develop operations.
‘People & Culture strategy’ with a goal to create common culture and make Boreo the best home for our personnel and companies to prosper.
Through our Acquisition strategy, we aim at creating the majority share of the targeted sales and earnings growth for the group during the 2021-2023 strategy period.
The Acquisition strategy furthermore aims to diversify the Group through platform transactions to new industries and geographies and hence creating a favorable risk profile for the group.
Strengthening of existing businesses with complementary add-on acquisitions
Healthy operative margins
High cash conversion
No integration to existing Business Areas
Sufficient scale either at acquisition or through a build-up after acquisition
Possibilities for value creation via Acquisitions and Operational Excellence
Full or non-existent integration to existing businesses
Geographical or product offering expansion
Vertical and horizontal expansion in the value-chain
Small operational add-ons to larger stand-alone acquisitions
Our philosophy in acquiring companies is not built on capturing synergies with our existing operations and hence we limit the risk profile attached to growth via acquisitions. However, in daily operations we continuously focus on identifying synergies between our businesses to create growth of sales and earnings. Identifying and capturing synergies is an integral part of our Operational Excellence strategy.
We aim to acquire companies in Northern Europe and selected other geographies.
Our experienced centralized M&A organization develops our M&A-activities and facilitates the creation of deal flow from our organization and from the network of advisors working with transactions.
In deal flow generation, we encourage and educate our people to ‘think in M&A’. This internal deal flow generation method acts as a key source for identifying complementary businesses to our existing operations. In addition, we continuously maintain relationships with the financial community working with transactions in Northern Europe. This in turn acts as a source of identifying possibilities for the group to diversify to new industries and geographies.
We have a standardized acquisition process from identification of opportunities, to execution of transaction and to post-acquisition integration. We pay high attention to aligning interests of key management of the acquired companies with the group.
We make sure that the company to be acquired is culturally fit for Boreo Group and is committed to Boreo way / values.
Head of M&A, Boreo Oyj
firstname.lastname@example.org, +358 40 706 9450
The ultimate target for driving operational excellence in Boreo is to optimize performance and value add to our shareholders.
Objective to enhance efficiency and improve earnings in all key operations throughout the group:
Working capital management
Boreo platform functions
Enablers to excel in operational excellence:
Entrepreneurial mindset whatever we do
Benchmarking and sharing best practices throughout the group and different functions
Continuous learning and development
Applying operational excellence in daily work means:
Agreeing and setting strategic objectives
Deciding on key value drivers
Following up and measuring of key performance indicators
Making corrective actions as needed
People & Culture is one of Boreo’s strategies. No goal will be achieved, if we do not have talented people working with us and if they are not willing to do their best. By deploying a systematic People & Culture strategy, we ensure success of our businesses, outcompete competition and help our people to cope with changes in their daily life.
The objective of our People & Culture strategy is to make Boreo the best home for our personnel to Grow and Prosper. We believe that when our people are happy and succeed in their work, our business targets will be achieved too.
In order to reach the objectives of our People & Culture strategy, we have defined five focus areas which are in the core of what we do. These are the areas in which we want to excel and which we prioritize.
For an employee, Boreo as a group can offer diverse possibilities for learning and career development. We assure that everyone joining Boreo will be warmly welcomed and straight away feel the casual and family-like culture and atmosphere we have in our organization.
We conduct annual personnel surveys and systematic eNPS (employee Net Promoter Score) surveys which help us to understand the state of our employee experience. On the basis of these surveys, we are able to develop our practices and culture to meet better the needs of our personnel.
By defining the Boreo value proposition, we aim at crystallizing what we can offer for our personnel and for possible new candidates and why they should join the Boreo family.
Strategic objectives of Boreo for the strategy period 2021-2023 are presented below. In accordance with the company’s guidance approach, the strategic financial objectives serve as the company’s guidance and Boreo does not provide a separate short-term outlook.
Minimum average sales growth during the strategy period 20%
Minimum operative EBIT at the end of the strategy period 8%
Net debt/operative EBITDA 2-3x