Investment process

Identification

tbd30 will actively contact target companies that are considered able to develop in a listed environment. tbd30 also looks forward to companies whose management and owners make the same assessment contacting tbd30 after listing has taken place and that knowledge of the available opportunity becomes more widespread. tbd30’s management and Board will to a great extent make use of its experience and network to identify suitable target companies. 

A potential target company should:

1. Be based in the Nordic countries
2. Provide clear added value and customer benefit
3. Have a strong position in the market in its sub-segment
4. Demonstrate good organic growth with a high proportion of contracted and recurrent revenue
5. Have a business model that is scalable where growth can improve margins
6. Have, in relation to competitors, a good extent of digitalization of important work processes and customer interfaces
7. Have a potential to grow through business combinations 
8. As  a benchmark have a transaction value of approximately three to five times the capital base of tbd30 at the time of the business combination, corresponding to approximately SEK 3 to SEK 5 billion.
9. Have a well-established sustainability vision and strategy

Evaluation

After a potential target company has been identified, the management and board will initiate an evaluation process.

1. The evaluation will be conducted, inter alia, but not exclusively through:

1. in-depth contacts with the management of the target company
2. contacts with relevant industry experts, competitors, customers and sub-suppliers
3. analyses of both the target company’s and competitors’ financial development
4. evaluation of management and employees in key positions in the target company 
5. analysis of the target company’s opportunities within a reasonable time to be ready to comply with Nasdaq Stockholm’s listing requirements

Transaction and decision-making process

An evaluation process with a good result will lead to the target company and the intended transaction structure being presented for the Board of tbd30. If the Board considers that the business combination and transaction structure are an attractive opportunity and comply with the set investment criteria, the Board will decide to complete negotiations on the business combination.

After negotiations are completed, the proposals for decision will be presented to the Board again. Provided that the Board presents a proposal for business combination that is supported by the independent members, all independent board members of tbd30 will vote for a business combination at the general meeting. If a resolution is accepted to propose an agreement on a business combination, the Board shall give notice of an extraordinary general meeting of tbd30 to propose that the meeting approve completion of the business combination and otherwise prepare to be able to complete the business combination, including initiating a review process at Nasdaq Stockholm. It is also intended that the nomination committee of tbd30 at the same general meeting produce proposals on changes to the Board to appoint individuals with the expertise and experience  suitable the business activities to be acquired, provided that the business combination is approved.

In the event of proposals and resolutions on potential transactions, it is very important that all parties involved take requisite consideration to the company’s code of conduct. Among other things, this means taking into account the ethical standards for potential vendors and the nature of the assets concerned as well as the prerequisites to engage in high-level work with sustainability.