Office Management

Linking arms with the entrepreneur for our next journey together

Office Management is a success story about a goal-driven competitor who, together with a colleague, founded a company to develop the copier and office market for small businesses. Revenue grew quickly, and over time the vision evolved into becoming a full-service provider of office solutions within Document Management, Telephony, Video, IT Operations and Facility Services. The company had increased its sales every year since inception when Mats Hjerpe, Partner at Priveq, first came into contact with Johan Tilander in 2005. However, it would take seven years before Priveq had the opportunity to invest.

“When I got to know Johan, our discussions led to a colleague and me being invited to a strategy meeting in Iceland in 2006,” says Mats. “At that time, Johan was not ready to sell. But we stayed in touch and met for coffee now and then to discuss how things were progressing. In 2011, shortly after one of those coffees, Johan called to say he had received an offer from an industrial buyer. He asked if we could help him evaluate it. After reviewing the company, we concluded that he had been offered a very attractive price. There was nothing to do but congratulate him.”

Asked Priveq to Submit a Counteroffer

However, Johan Tilander had second thoughts. The transaction would mean that his company name would disappear, and he felt it would place his employees in a vulnerable position under an industrial owner. In addition, he did not feel quite finished with the company and wanted to remain part of its continued journey. Instead, he asked Priveq to submit a counteroffer. By then, Office Management had approximately 5,500 customers, revenues of around SEK 600 million and an operating margin of about 8 percent. The growth prospects were strong. The company had also successfully managed a leadership transition from founder Johan Tilander to CEO Mats Ågren – a long-time employee and former world champion in floorball.

“We went as far as we could with our offer, but we could not match the level proposed by the industrial buyer. Despite that, Johan chose to let Priveq invest and continue building the company together with us. We began discussions at the end of 2011, reached agreement very quickly, signed a letter of intent in January 2012 and a final agreement in the spring – fully in line with the LOI. Having followed the company from the sidelines for so many years, it was fantastic to finally support it in taking the next step in an already successful journey,” says Mats.

A Plan for Further Development

Priveq acquired 65 percent of Office Management, while founder Johan Tilander retained 20 percent and management 15 percent. The plan was to support the company’s transition from a purely Swedish player into a Nordic business and to further develop its integrated customer offering. To succeed, greater structure and a number of supporting systems were required. There was also potential to increase cross-selling to existing customers. Above all, the ambition was to strengthen the IT offering in order to build a more business-critical and closer relationship with customers.

Office Management has a strong sales culture, with sales boards lining the walls and a bell rung every time a deal is signed.

During Priveq Investment’s ownership period, Office Management delivered solid organic growth complemented by several strategic acquisitions to strengthen its IT offering and geographic presence. Revenue increased from SEK 600 million to SEK 900 million, and profitability improved significantly from an already solid level, despite substantial investments in organizational development. Following Priveq’s entry, operations were established in Norway, and during the ownership period the company expanded into Helsinki through an acquisition.

The Next Step

The company’s strong development naturally attracted interest from other parties, and the owners were approached from several directions. As the business plan had been executed earlier than expected, 2016 marked the time to hand over ownership to a new partner to support the company’s next phase of growth.

“Office Management developed very well over the past few years, and the five-year plan we set together in mid-2012 was completed. I would like to extend my sincere thanks to Priveq for their active ownership and support in building the structural capital necessary for our continued expansion. At the same time, I welcome Inter IKEA Investments as the new main owner and am convinced that they will help take Office Management to the next level,” commented Mats Ågren, CEO of Office Management, in connection with the transaction.