“Only during the last ten years, we had 22 acquisitions,” says Palle Dedenroth – singling out the recent takeover of the hydraulics elements from US-based Eaton as the largest by far. Its addition of 3 billion dollars yearly to the turnover, corresponded to a third of the existing Danfoss business. It involved some 30 entities, with 5–10 share deals coming in on top.
In the integration process, establishing the cross-group functionality of the in-house bank is en early priority. Hedging policies are one example of elements that can come later. Accepting how the incoming businesses assess the risks they are familiar with can work well enough for a starting point.
In the broader management perspective, consolidating entities is one of the goals.
“It is the number of entities that drives complexity.”
Palle Dedenroth is Assistant Treasurer, Corporate Treasury, Danfoss.
• News from Treasury 360° Nordic 2024, at Copenhagen Airport on 23 May, is gathered here.
• And why not spread the posts in our LinkedIn flow? Sign up to follow it if you don’t already – and spread this post!
• Find here the main conference website, with agenda.
• Download the 68-page event magazine here (including a packed 7-page agenda section).
• Many sessions appear in full as videos in the days or weeks after the event.