Stensbjerg El ApS becomes part of InstallatørGruppen ApS following successful generational succession in early 2024. Stensbjerg El will retain its name and continue to serve both private and commercial customers in the local area around Køge, Stevns, and Faxe.

InstallatørGruppen has taken over 100 percent of the company, but Lasse Aagaard Hansen has reinvested part of the purchase price in InstallatørGruppen and has thus become a co-owner. This sends a strong signal to employees and customers that he believes in the future.

Confidentiality of the sale was crucial

Lasse Aagaard Hansen was in no doubt that he needed a professional broker to manage the transaction with a structured sales process. He was nervous that word would spread in the market if he approached a potential buyer himself.

"I needed someone from the outside to assess the business and prepare a sales prospectus, and it had to be an advisor who could be professional with the buyer," he says.

Always two advisors to lead the process

The choice fell on Business Broker, which appointed two advisors, Ulf Steiness and John Nygaard, to lead the process.

"They were very professional, and the fact that there are always two of them on the case gives you peace of mind. They both knew 100 percent what was happening in the process and followed up on who had the ball and who needed to respond," says Lasse Aagaard Hansen.

He is also very happy with the way they negotiated the terms.

"They were good negotiators, and during Due Diligence, they optimized the process so that I could achieve the best result."

The timing was perfect as several industry players were consolidating through acquisitions.

"Stensbjerg El is a healthy business with everything well under control, so there were several interested buyers. We were able to leverage that in the negotiations," says Ulf Steiness from Business Broker.

Earn-out development

It's crucial in this kind of generational change with smaller, locally rooted companies that the seller continues as the leader.

"It's hard to replace an owner who is tied to customers and operations. You're either local or you're not," adds John Nygaard.

In this context, an agreement on reinvestment orearn-out a business transaction can motivate the seller to maintain focus on development and growth. An earn-out a variable purchase price that is typically settled after 1-2 years and depends on conditions agreed upon by the buyer and seller. Reinvestment often has a longer and more strategic focus.

Both are relevant tools to bridge the gap between the buyer's concerns and the seller's positive expectations for the future.