Strong market dynamics support compounders

We compound high performing local winners on the highly fragmented markets in Europe, applying our proven playbook that has been tested in more than 150 companies joining us. 

We align incentives for local businesses sellers through HG’s stock scheme and our thorough selection process ensures that incoming companies resonate with the HG culture and integrate easily. 

Together, we leverage on our network, common knowledge and scale.

Our value creating Toolkit accelerates performance 

Our value creating toolkit reinforces performance of our best-of-the-best businesses, who share knowledge, best practice, and resources to jointly enhance group performance and ensure resilience.

The work is led by our regional leaders, who have full P&L responsibility, are responsible for health and safety and manage by offering our businesses the most relevant parts of our toolkit at any given time to support their development. 

Since HG was formed in 2021, ~800 professionals have completed training at the HG Academy. The Academy equips our craftspeople with a comprehensive set of skills, from achieving pricing excellence and project management skills, to learning about the different disciplines and embracing the culture. Through initiatives like the "Greenhouse Program," launched in 2023, we’re nurturing emerging talent, equipping them with the skills and knowledge to thrive in leadership roles and play a central role in successions.

HG’s apprenticeship programme shows our commitment to developing talent within our ranks – with a long-term goal of 12% of our workforce comprising of apprentices, we're investing in the next generation of skilled professionals. 

We have developed a comprehensive General Manager's Toolkit. This toolkit, along with targeted training, is being offered to the General Managers after joining. The Toolkit includes tools in the areas of project management, contractual guidelines, standardized contracts, sales support, pricing tools, centralised handling of regulatory documentation and requirements, resource-sharing and joint purchasing agreements.

In addition, co-tendering enables improved financial terms, such as securing higher hourly rates through collaboration with multiple companies within the Group, and resource-sharing optimizes outcomes through collaborative personnel exchange that contributes to successful and timely project delivery

And, naturally, we share sustainability objectives and tools.

“94 percent of the entrepreneurs joining HG benefits from HG’s network and peer-to-peer collaboration regularly. With an Employee Net Promoter Score (eNPS) of 29, well above the industry average of 12, we've cultivated a workforce that's not only engaged but also committed to our shared success.”

Our culture is key to success

HG’s culture celebrates craftmanship, collaboration and recognizes our people as the cornerstone of our success. We empower local decision-making and cherish the local heritage and relationships that define us. 

We are targeting to only include companies that are among the 20% strongest in their markets in the HG family, Thus, the local businesses can continue to build on their established local-market specialists with proven track records and retain their strong local brands, employees and customer relationships after joining as we trust each other’s independent decision making.

HG’s role is to support and leverage on the local businesses’ key competences and provide best practice, professional support and national coordination.

Sustainability from Day One

Since HG was founded, we have made it a priority to integrate sustainability into every aspect of our business. By supporting the ESG agendas of both the group and the local companies at the same time, we are creating a ripple effect of positive change. This includes, among other things, limiting our footprint by ISO certifying our companies, mapping our scope 1 and 2 emissions and driving a lasting change throughout the industry with code of conduct trainings of our employees. Recruit and develop apprentices is also an integral part of our ESG strategy. 

Our local companies are now able to take bold steps towards a more sustainable future that they may not have been able to achieve on their own. We see an increasing appetite and requirements from our customers to deliver on the ESG agenda, giving us a competitive advantage in our prospects to win larger national agreements and as partners to insurance companies. Through our more professionalised approach to ESG we are thus creating value for our customers, a quality that has likely contributed to our Net Promoter Score (“NPS”) of 69*.

Our M&A model is efficient and built on referrals 

80% of our companies are sourced from referrals from the existing HG network and on average, we have been joined by a new company every 12th day since our inception. Beyond financial metrics, cultural fit is paramount in our M&A efforts. In 2024, we welcomed 23 new companies in Norway, Sweden, Denmark and Germany.

Our thorough selection process ensures that incoming companies resonate with the HG culture and integrate easily. The resounding approval rate of joining companies recommending HG to others (90 percent) attests to the strength of our cultural bonds.

However, the companies we are in dialogue with are attracted to HG not only for financial gain, but also for the opportunity to contribute to a lasting legacy. Our enduring commitment to a people-centred culture and long-term vision resonates strongly with potential local companies. Moving forward, we plan to continue to include companies into HG at the same pace as for 2024. We have a strong pipelines in the newer markets of Denmark and Germany, as well as in the more mature markets of Norway and Sweden.

Furthermore, we align financial incentives. HG deploys an 80/20 rollover model in which 80 percent is paid through upfront cash consideration and 20 percent through HG stock 

A short transaction timeline enables strong pipeline conversion and smooth integration of new local businesses. On average, transactions are completed within four months, making the process transparent and as positive as possible for the companies going through it. 

Recognizing the importance of minimizing disruption, we prioritize a seamless onboarding process that preserves day-to-day operations. Up-front relationship building and trust lay the groundwork for effective integration, with a focus on financial reporting and ethics training. While environmental certifications and selective processes unfold during the first year, our emphasis on cultural cohesion ensures a harmonious transition, driving HG's collective growth and success.