Companies owned by EQT not only improve during EQT's ownership period – they keep improving after EQT has left as owner, adding value to society in the form of jobs, tax and prosperity. This is shown in a new study of the Swedish companies that EQT has owned and sold since 1994. The study investigates how the 22 companies performed during a five year period after divestment.
The result: Companies continued to grow and prosper with their new owners. On average, sales increases by 9%, EBITDA by 6% and the number of staff by 8% annually.
"These are some striking findings. People often attribute private equity firms with short term thinking, but this study really busts the myth. This is just what EQT’s business model is about – “future-proofing” companies to be strong and sustainable for the long-term, says Thomas von Koch, CEO and Managing Partner of EQT.
EQT continuously monitors how the companies develop during EQT’s ownership period. On average, sales increase by 8%, EBITDA by 12% and the number of employees by 10% on a yearly basis (as of December 2013). This new study, however, explores for the first time how companies perform after exit. To make the study as transparent and verifiable as possible, only figures publicly available at the Swedish Companies Registration Office were used.
The study focuses on Sweden, but the conclusions are most likely valid from an international perspective, too. EQT is local with locals. If EQT develops sustainable companies, every society where the companies are active will gain in the form of jobs, tax and prosperity, says Thomas von Koch. Proving that we actually do good is absolute key for EQT going forward. Without adding value to society, society will not provide us with a “license to operate”.