Kärnhem AB

Kärnhem AB

INTERVIEW WITH ANDERS ÖMAN, PREVIOUS MAJORITY OWNER OF KÄRNHEM

Kärnhem AB operates with property development. Company revenues amounted to about 250 million SEK in 2012 and it has some 1,500 properties in their portfolio for development and sale. On March 11th, 2013 the publicly listed corporate group BWG Homes A/S acquired 100% of the stock.

Kärnhem interiör och exteriör 2011 290

Why did you choose to start a process to begin with?

“We spotted a great potential to develop and grow our operation, and for that reason we wanted to capitalize the company with a larger war chest of resources, so that we could realize our plans in a relatively short time.”

The market for property development had a very bad year in 2012, wasn’t the timing wrong for starting that kind of process?

“Yes of course, had we brought in new partners or sold the company a few years earlier when we made over 70 million SEK profit, it might have turned out even better. But you always have to act on the current conditions. Certainly, the market was very low at the time, and the profitability of the company was not at its best, but we saw the future potential. And with an increase in cash, we would be able to expand a lot faster. Or as Louise Hoffsten sang in the Eurovision Song Contest;”Only the dead fish follow the stream…”

Your intention was to bring in money to the company, but you ended up selling the whole operation, why was that?

“The project started with Excore drawing up quite an extensive prospectus. This was presented to companies and possible investors. What was pretty interesting was that it led to a number of different proposals on possible deals. Some wanted to invest in the operation, some wanted to sell properties to us, and others wanted to establish strategic partnerships. It’s always hard to predict what will come up when you’re approaching the market the way we did. But the most attractive suggestion for us was a deal with Norwegian BWG Homes. They are a strong partner, they have established an operation in Sweden through Myresjöhus, but more importantly, they had the will and the resources to significantly expand our operation. Sometimes you have to make the decisions you think are best for the operation. You can’t be afraid of changing your opinion during the process. You have to listen to the market and make a decision once you know what the options are. Otherwise it’s just speculation.”

What will your role be now?

“Even before we started working with Excore, my role in the company was pretty limited. What I’m really passionate about is Växjö Lakers. I will be on the Board for Kärnhem so I can continue helping the company develop in the future. After all, I’m the one who founded the company so I don’t want to completely let go of it.”

What do you think about the company’s future?

“We have a highly skilled group of people working in the company. Due to this new deal, we now have a solid war chest and a large portfolio of properties to develop. The market is slowly but surely improving so I wouldn’t be surprised if the company returned revenues of 500 million SEK within two to three years. We have developed a five year plan to reach close to 1 billion in revenue, and that promises to be an exciting journey.”

What was the hardest part of the project?

“The most critical part of the project was probably when we negotiated the agreement. BWG had tough lawyers who wanted to twist and turn every single sentence in a fairly extensive agreement. But Excore and our legal advisor did a great countering job. This was absolutely the most difficult part.”

What are your recommendations to others after the deal?

“Don’t be afraid to start a structured process like we did. It’s not until then you know your options. And don’t be afraid to change track during the process. You have to adapt. I would also highly recommend using a professional advisor. We would never been able to handle this project by ourselves. We probably wouldn’t have had any contact with Norwegian BWG Homes. I must recommend Excore; I think they’ve done a great job in this deal. Right from the first discussion until all paperwork was completed.”

Anders_Öman

Anders Öman tidigare majoritetsägare i Kärnhem AB

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