Could you share why you initially thought Instalco's approach wouldn't work?

When Instalco emerged, I quickly realized that their primary objective was financial arbitrage. They were buying companies outside the stock market and introducing them into the stock market, creating a significant difference in valuation. As per your questions, Instalco was purchasing companies at a higher frequency and at higher rates, which increased prices.

Could you share why you initially thought Instalco's approach wouldn't work?

Bravida was, and still is, successful in procuring materials and products for the installation business, making it the best in the Nordics. However, none of these synergies or economies of scale were happening at Instalco. Despite this, they remained successful. I believe this is due to their minimal overhead, which is the smallest I've ever seen in a large corporation. They had one CEO and one M&A officer, and that was it.

When we consult with people more closely associated with Instalco, the feedback we receive suggests that they purchase higher quality businesses with higher margins. Consequently, they don't need to conduct turnarounds or integrate ERP systems, as these businesses are already performing well. The only thing they really need to do is ask what kind of assistance they need and let them continue running the company as they did before.

They promote good commercial performance by encouraging businesses to continue doing what they're doing. They also emphasize that this is a local business, meaning that if you're good at what you're doing, you're probably the best at it locally. Stockholm and Malmö may be different, but if you're good at what you're doing in a typical city in Sweden or Norway, you're the installation guy in that location.