The Central Jutland company PF Mobility ApS has 30 years of experience in producing custom-built bicycles for people with mobility disabilities.

Since 2000, Martin Søndergaard has been director and co-owner of the factory in Vildbjerg. In recent years, he has had full ownership, also of the subsidiary in the Netherlands.

As a result of a focused sales process, ownership has been transferred to the Swedish private equity fund Systematic Growth, which specializes in acquiring well-run, medium-sized niche companies.

PF Mobility will be part of a group of assistive technology companies in the Swedish group.

Claus Bruun and Klaus Termansen assisted PF Mobility in the sale process.

Early generational succession manufacturing companies

The change of ownership in PF Mobility is a case where the buyer approached the seller with an acquisition offer.
Read also Sale to private equity - what are the ups and downs?

Owner manager Martin Søndergaard needed to consider the request:

"I am 52 years old and had planned to start considering generational succession within the next three years, with a view to having plenty of time to prepare the company for sale before I turn 60. But the approach from Systematic Growth sounded exciting and promising."

After several dialogues, a preliminary price frame and a draft letter of intent from the buyer, Martin Søndergaard decided to discuss the offer with a business broker.

"My accountant was ready to assist me, but he recommended that I hire someone who understands how to conduct sales processes to ensure that my interests were taken care of in the extensive due diligencethat lay ahead. That's why I contacted Business Broker."

Seek advice from a business broker

This point is in line with Business Brokers .

When a large potential buyer shows serious interest in purchasing a small or medium-sized business, owner-managers need experienced and professional assistance to assess the complexity of the case and negotiate the optimal value and solution.

"Very few business owners have experience of selling a business. When a private equity fund that specializes in acquisitions comes forward as a buyer, it's wise to get competent advice so that you as a seller are on an equal footing with the buyer in the negotiation process," points out business broker Klaus Termansen.

Attractive solutions for the buyer's bid

As advisors to PF Mobility, Claus Bruun and Klaus Termansen have, for example, assisted seller Martin Søndergaard in proposing solutions to counter buyer price pressure in a period of rising interest rates to the seller's advantage.

Among other things, the solution means that Martin Søndergaard reinvests part of his sales proceeds in Systematic Growth and retains ownership of PF Mobility's domicile property.

"A private equity fund is often only interested in the operational part of a business. Therefore, it is an advantageous element in the overall transaction that Martin Søndergaard established a real estate company in connection with the change of ownership and formally acts as the landlord for Systematic Growth," explains Claus Bruun from Business Broker.

Synergies when selling to private equity

Martin Søndergaard continues as CEO of PF Mobility.

Although the change of ownership does not involve any short-term changes to the company's daily operations, Martin Søndergaard still sees a number of new opportunities:

"We will be part of a group of companies with the prospect of business synergies and access to new knowledge and professional input. Perhaps also new markets. The group is relatively new, so we can help shape the collaboration. I look forward to that."