The heart and
soul of Stockwik.
About
Stockwik provides its shareholders with the opportunity to be partial owners of a portfolio of well-run, stable, profitable, high-quality Swedish companies of smaller size. Stockwik buys companies and offers a stable platform for small companies to develop both organically and through complementary acquisitions. Stockwik takes advantage of the top competence in smaller companies while offering the security and opportunities of a large company. We make long-term investments and acquire companies in order to keep them. In our investment process, we make both quantitative demands such as profitability and capital efficiency, and qualitative demands such as business ethics and order. Our work is based on three foundational principles:
The right company, the right people, the right values.
This is what we offer our shareholders
Stockwik means safe, long-term exposure to a number of well-managed companies in different segments and niches. Risk is minimised through the diversification provided by carefully selected investments in varying companies and industries. Our inspiration comes from several directions. Listed companies, which typically acquire larger companies within chosen niches comparable to Stockwik, are Addtech and Indutrade. Among others, Benjamin Graham, David Dodd and Joel Greenblatt have influenced our view of valuation and, not least of all, risk. Of course, much of our inspiration also comes from the joy we see in smoothly functioning companies, in the passion of driven individuals, in meetings between people, and in creating something of which we can all be proud. Stockwik focuses on efficient companies with stable and positive cash flows. Our portfolio offers a distribution of risk. The collective competence of the board and management group guarantee a good rate of return at low operational risk. Stockwik’s ambition is to achieve annual growth in value with low operational risk. We intend to distribute 50% of the net profits, on average, calculated over the course of an economic cycle.
Acquisition concept
Stockwik is an investment firm focused on acquisition and administration of quality Swedish companies. Stockwik takes over from the person selling their company to us in a responsible manner. We manage and further develop operations together with the remaining employees. Because our company is listed, we create the opportunity for investors in our stock to become a part of this concept. Stockwik promotes healthy, long-sighted entrepreneurship. We purchase companies in order to keep them.
Investment opportunities
Stockwik searches for companies to acquire in Sweden. The focus is on companies with an enterprise value between SEK 25 million and SEK 100 million. However, complementary acquisitions can be smaller. Stockwik acquires companies that are wholly owned.
Acquisition possibilities are favourable. There are over 20,000 companies of the proper size. Even with strict requirements, there are more than enough acquisition opportunities.
Many businesses have been created by industrious people born in the 40s and 50s. Many of these companies are still being run by the original owner. This is perfectly natural, since the owners love their businesses, which provide a lifestyle they feel comfortable with. However, sooner or later, it’s time for the new generation to take over.
Another situation we encounter is entrepreneurs who feel a hunger for new challenges and who are looking for new opportunities to develop. They also wish for new colleagues. This can happen even if their business has a fairly large number of employees. Stockwik offers a stimulating and constantly developing network of individuals with different backgrounds and competences. All of these individuals share a passion for operating businesses and creating something to be proud of.
Stockwik can also help lift up small companies so that they blossom into larger operations. This transition often requires a combination of maintaining and taking advantage of what's there and, at the same time, creating the proper strategic and structural building blocks for future development. At times, more staff resources and capital are required. Relevant competence and experience, along with Stockwik’s network, create good conditions.
If you sell your company to Stockwik, we want you to feel complete confidence that it is in good hands with us. Stockwik is an owner that administers and develops the business in a responsible manner. We listen to the seller and take advantage of the competence provided by the employees. Everyone should feel security and pride in the fact that the business is living on and developing positively as a part of Stockwik.
The right company
Stockwik has no preliminary limitations in terms of industry or business in its search for investment targets. At the same time, not all companies fulfil our requirements. Far from it. Companies of particular interest to Stockwik are business that have high quality in their operational activities and profitability. A basic qualitative variable is professional integrity. This can also be described as a healthy company culture distinguished by joy, honesty, good customer relations and order. Examples of quantitative variables that are important to us are stable and persevering profitability and efficient use of capital. Our quantitative and qualitative investment criteria serve as point of departure and are used in selection. Our qualitative criteria ensure that we are investing in companies that have an essentially vital culture. Our quantitative ranking system helps us focus on the best companies in the population.
The right people
Just as Stockwik invests in companies, we also invest in individuals. Even if the entrepreneur who has sold their company to us does not always remain in the business, it is inevitable that the company culture lives on to a significant degree. With time, it can be influenced and changed, but we would rather invest in companies in which the culture is already positive and healthy. In this way, the long- term conditions are better, in our opinion, in all situations and not least of all in the event of succession. We value people who are honest, reliable and engaged, who are competent within their area and who truly make the customers happy, not simply do their job. In other words, we value people who take pride in their work.
The right values
When we say ‘right values’, we mean, on the one hand, that the price should be reasonable from both Stockwik’s and the seller’s perspective, and, on the other hand, that the view of how the company should be run is healthy. Stockwik’s investment approach means that we are able to bring home our investment with a safety margin and within a reasonable amount of time. In addition to this, there must be enough financial room to ensure endurance.
Long-sightedness
We work every day to take a step forward. We aren’t long-sighted as an excuse for slowness. We are long-sighted when we invest. We keep the companies we buy.
Joining our business
We are interested in companies that are qualified to join our business and our network. We are looking for companies that can be a part of our group. The companies that make it, or who can develop in order to qualify, will receive access to everything our network offers in terms of competence and contacts, experience with processes, and the value that we create. Stockwik stands for an environment that promotes healthy, sustainable and long-sighted enterprise. We offer an opportunity for companies that are facing problems related to a change of generation to continue to work, grow and exist for its customers. We offer entrepreneurs the opportunity to safeguard part of the value that has been created and to diversify their financial risk. At the same time, Stockwik comprises a platform where entrepreneurs can continue, and even accelerate, their growth or find relief so that they can focus on what they personally do best.
Staffing
Stockwik’s management and board have many years of experience as well as relevant, complementary competences. We also have excellent skills in analysis and assessment, operative management and operation of companies, and business law and law pertaining to acquisitions and contracts. In addition, we have knowledge about making companies running at a loss profitable again as well as about executing both acquisitions and complementary acquisitions in addition to divestments. We also have well-developed and widespread networks. We have good experience in working together. Our management works actively for the most part with new investments as well as analysis and constant follow-up of the existing portfolio companies. Besides its usual board work, the board acts as investment advisor when the final investments decisions are made. There is also a business network tied to Stockwik, consisting of experienced entrepreneurs and company managers. These individuals are based in a number of different industries and specialized areas, where each and every person has their own in-depth knowledge and experience of the challenges and opportunities facing companies. Through this network, Stockwik can evaluate further investment possibilities, quickly and in a qualified manner, and find opportunities or solutions suitable to the needs of investment targets and portfolio companies. This network also acquires strength from long-term share ownership in Stockwik.
Social Responsibility
Stockwik obviously has a natural element of social responsibility, both internally and externally. We have a basic attitude that companies we choose to invest in should in some way contribute positively to our society. We also ensure that employees thrive, develop and feel good in our operations in every way. Of course, we also evaluate the companies that are outside our group and that we choose to hire, work for or in some way collaborate with. For Stockwik, this is based on a holistic approach and an understanding of the fact that we are part of something bigger; a network, society and ultimately our world. It is also natural for us based on the fact that we invest long-term in companies and that these consist of people.
In order to ensure a high degree of quality in this work, Stockwik has established both practical routines and formal follow-up. The work is continously ongoing and constantly subject to improvements. Of course, the work on sustainability is part of both Stockwik's board work and the board work in our portfolio companies.