Overnight success takes a lot of planning
Creating growth is a process. And that process needs to be carefully planned and executed to come to fruition. In the case of the partnership between Procuritas and SOFACOMPANY, a plan was in place before the deal was signed.
SOFACOMPANY sells affordable, upholstered designer furniture through online channels with showrooms in key markets. Procuritas became an owner in 2017 and exited in 2021, during which time the Procuritas team worked closely with management to transform and grow the company. As a result, revenue more than doubled to DKK 545 million (€73 million).
“Before we teamed up with Procuritas, we knew what SOFACOMPANY should be aiming for, and we wanted to scale, but we needed a partner to help us plot the way forward,” recalls Henrik Andersen, CEO of SOFACOMPANY. “When we met Procuritas for the first time, we had great chemistry. They understood how our product offer is emotional for the end consumer, that investing in your home is about realizing your dream. As a partner you need to understand the concept, the products and the customer journey. It’s about more than revenue, EBITDA and gross margin.”
“We agreed on how we were going to proceed before the acquisition was finalized.”
Andersen says working together with Procuritas was easy from day one. “Together, we launched initiatives that focused on building a scalable, direct-to-consumer business.”
First, investing in people and the organization, and preparing the platform with better e-commerce abilities. We also invested in the supply chain and general stock so that SOFACOMPANY would have the products customers wanted, ready for shipment. When all the basics were in place, it was time to put more fuel in the engine by expanding the number of showrooms and increasing marketing spend.
“Once we had the plan written down, everyone knew it would be hard work, but we also knew what needed to be done,” says Andersen. ”Of course, you must calibrate along the way, but in the end I’m quite impressed with how well our plan played out.”