Business model and strategy

Business model and strategy

Our business model

Serneke offers comprehensive and complementary services in construction, civil engineering, project development and property management. We strives to be the obvious choice of contractor for large projects where higher demands are imposed on the provider's expertise and experience, where, accordingly, there is less competition because fewer players are able to meet the established requirements. 

As a contractor, we base our its approach on the client's needs and aims to be perceived as the most dedicated, professional, innovative and dynamic contractor in Sweden. In connection with tenders and design processes, we aim to differentiate ourselves through an innovative offering and a clear customer focus based on our core values. 

In the production, completion, evaluation and follow-up phases, Serneke ensures quality through careful governance and control, with structured processes and systematic review. 

Our strategy

Strengthen the position in the business area Construction and Civil Engineering in existing regions 

Serneke strives to grow and increase its market position, primarily in the priority regions of Stockholm, Gothenburg and Malmö and surrounding regions. The Group has achieved a sufficient size to be able to compete in major procurements, and its overall focus is on clients with larger and more complex projects with contracting formats where our competitive advantages make most difference. 

Through a strong organization and a highly reputable comprehensive offer, we can grow faster than the Swedish construction market in general, capturing market share from competitors in construction and civil engineering. 

The strategy going forward is focused on strengthening the market position, especially in the regions around Stockholm and Malmö where we have not yet established ourselves as well as in the Gothenburg region. The strategy within the Business Area Civil Engineering is to follow Construction's development curve in a controlled manner and to address the market for major projects, primarily in the infrastructure sector, where Serneke believes its organization and skills offer the best opportunities for future growth by being involved in building to reduce the housing shortage, on the back of urbanization and low interest rate environment. Major ongoing and planned investments by the central government also generate direct and indirect opportunities to grow with the market. 

Continued initiative in Business Area Project Development 

In recent years, Business Area Project Development has strengthened its offering and its position in the market. Completed projects have generated positive attention and good references, providing increased opportunities to secure new land allocations in the future. Combined with short decision-making paths, cooperation between business areas and reinforced internal organization, the Group’s capacity to deliver and its cost control generate business opportunities in a growing market. Better internal resources increase opportunities to acquire land or development properties, and to establish cooperation with project partners to take on and complete major projects. 

Population growth, the housing shortage and continued strong household finances are driving the need for new housing in Serneke’s principal markets. By retaining knowledge and resources within our contracting business, we control the process from land allocation to the completed contract and can exploit synergies between the business areas. Through a mix of projects with short lead times and projects held for long-term capital appreciation, a favorable balance is achieved between risk, return and capital tied-up. 

Use the organizational platform for continued growth 

Serneke has made extensive investments in processes, systems and its organization. The number of employees has been reinforced with the objective of supporting production closely and providing clear rules for target review. A high proportion of white collar workers entails good control and governance of scheduling and finances throughout the process, which is a strength today but will increase in importance as the company grows. Having its own blue collar workers provides the opportunity to influence implementation and maintain control over the execution phase, even when subcontractors are hired in. 

Grow through selective acquisitions 

The fragmented Swedish construction market offers good acquisition opportunities, especially for a company like Serneke with the entrepreneurial culture of a smaller contracting company’s combined with a larger company’s quality assurance systems, processes and organization. 

Serneke has an established acquisition policy and a structured approach for identifying, implementing and integrating acquisitions. We have mapped out the market and continuously evaluates potential acquisitions with stable earnings capacity that can complement the existing market offering and contribute with positive synergies. The potential for integration is a particularly important parameter because Serneke values a corporate culture similar to the one that already exists within the Group. 

Serneke’s current acquisition strategy primarily aims to further strengthen the Group’s position in the three metropolitan areas and its access to skilled staff and strengthening the offering from business area Civil Engineering.