Translink has contributed to the acquisition and sale of a significant number of industrial companies in several industries and segments. As a consequence of the overall development towards major production units, Translink has contributed to many sale of companies to both industrial buyers and private equity companies. In relation to mergers and acquisitions, there are several industry-specific conditions for industrial companies:
Industrial companies are often characterised by very specific knowledge of a product and/or an industry segment, which secures a specific competitive advantage. This relationship can create challenges if two companies are to be merged after the transfer, or if the senior management leaves – especially in cases where a large part of the company’s knowledge has been with the outgoing management.
Industrial companies are often very export-oriented, so there is an advantage in searching globally for potential buyers/sellers.
Finally, industrial companies often have significant investments in machinery and other manufacturing equipment. In many situations, the best price and financing are obtained where the transaction causes synergies like reduced overhead costs.