During a long industrial career, serving as CFO, GM, Head of Portfolio Management, Head of Strategy and M&A, and other roles, portfolio transformations have been consistently on the agenda. I have experienced the challenge of transformative change, both in management teams, and in my leadership roles.
My first exposure to a complex restructuring case in a leadership role, came already in the late 80s to early 90s, with a merger of two equal Scandinavian companies within the Trelleborg group, Ahlsell Profil and Gavle Verken. The inexperience of the management team, and the impact of the financial crisis in the early 90s made an already complex integration, even more challenging.
The large decentralization and transformation of the Sandvik Group, initiated in 2015, was the biggest challenge yet. As Head of Portfolio Management of the Sandvik group I led the team that conducted the initial strategic portfolio review, prepared the selected companies for sale through thorough pre-restructuring measures, and executed the eventual sale and divestment of the selected companies.
The majority of the selected companies were divested to strategic or financial buyers, but as in the case of the complex carve out of Alleima (Sandvik Materials Technology), we conducted a listing on Nasdaq Stockholm.
My work with Alleima’s transformation started in 2002. In the early 2000s, the company experienced unstable operational performance and profitability, leading to the initiation of an operational improvement program initially focused on production, supply and sales processes. Following the improvements in stability and profitability, we transformed the portfolio through several divestments of non-core assets. Finally, we addressed the company’s growth by making greenfield and R&D investments, as well as targeted acquisitions. The period from 2002-2015 was an important phase in the development of the company.
Through my work with large transformational changes I have experienced many pit-falls, and in my experience, by not respecting the challenge of transformational change, companies often lose operational performance and stability, negatively impacting the expected value creation from the restructuring.
Built on my experience, MonteCap’s key factors for a successful restructuring are maintaining stable operational performance and a dynamic phasing of the process. We are focused on strengthening and supporting the executive management team during the transformational portfolio processes.
I am very excited to provide this unique competence and experience through MonteCap.
- Mats Gunnarsson, CEO and founder of MonteCap