Our development strategy is based on the Orolia management approach intrinsically creates value for our shareholders as it permits to leverage four key performance improvement opportunities, which are characteristic of our subsidiaries or targeted acquisitions:
High-tech SMEs specialized in electronic equipments and systems for relatively mature markets such as space or defense and security often present substantial improvement opportunities in terms of management, performance optimization, international development or implementation of an ambitious growth strategy. Accordingly, those companies can benefit from belonging to a Group knowledgeable of their types of activity, that has the ability to understand their technologies, that has sufficient financial strength for their future development, and experienced in international expansion, innovation or merger and acquisition.
Even for businesses with a sound management team and a high level of profitability, the presence of Orolia as a parent can significantly improve their global performance by optimizing their development strategy, by analyzing in greater details costs and revenue sources of their different product lines, and by focusing their management teams on cash generation, risks reduction and shareholder value creation.
As a matter of facts, financial investors are frequently reluctant towards the high-technological sector where it is fundamentally more complex to apprehend the market trends and technological evolutions that can potentially impact the way of running the business. The Orolia management team is both skilled in financial matters and capable of understanding its subsidiaries’ uniqueness and the characteristics of their markets and technologies. Thus Orolia is in a favorable position to weigh the pros and cons regarding new investments, development of new market segments and technologies or even new acquisitions. Being the intermediary with investors who can check and rely on Orolia’s global performances allows the Group to provide strong financial resources to its subsidiaries, therefore supporting their development that could otherwise be restrained by a lack of cash.
A management team with a supportive, decentralized management style is attractive to entrepreneurial managers and to many owners of SMEs who wish to sell their companies but to keep managing it. This gives Orolia the opportunity to make acquisitions in non-competitive, favorable conditions.
