Niels Jacobsen sold the family business:
"The timing was perfect"

Things take time when you want to do them properly, and that's what Niels Jacobsen wants. He spent several years preparing both himself and Kiltin A/S for a sale, and when the right buyers came along, he was ready to act. The combination of due diligence, good advisors and timing means that Niels Jacobsen can hand over his life's work with the certainty that the company will live on.

The story of Kiltin begins in 1948. After the war, municipalities in Denmark began to formalize rat control, and the young, entrepreneurial Urban Jacobsen quickly saw that there was a market here. He founded the company Kiltin A/S, which he ran for decades with his wife Ulla and four good employees. The customers were mainly a large number of municipalities, and the company also manufactured and sold pesticides.

In the spring of 1990, Urban Jacobsen fell ill and died at the age of 64. The death was completely unexpected and no one was prepared for the situation. Most of the information about Kiltin was in my father's head, says his son Niels Jacobsen.

"At the time, I was working in IT and didn't really plan to join the family business, but my mother was suddenly left alone with everything, so of course I stepped in. I was 32 years old, and career-wise, it's a really good age. You have experience, you can have a lot of balls in the air, you can work in the dark, and I needed that. Just two months after my father's death, we moved the company to Støberivej in Stenløse, where we have been ever since. That was the beginning of my work at Kiltin," says Niels Jacobsen, who first became part of the management team and then quickly took over the company from his mother.

Skilled employees create a framework for growth

Whereas in Urban Jacobsen's day you could enter into pest control contracts directly with individual municipalities, today the process is very different and much more regulated. Now it's all about advanced tendering rules, but Niels Jacobsen and Kiltin have adapted to this reality.

The company currently works with around 20 municipalities, with the municipal market accounting for around 50% of revenue.

"Among other things, we have become big by acquiring and taking over other companies in the industry, and this has given weight and breadth to our activities," says Niels Jacobsen. He attributes the positive development not least to the company's 70 employees:

"If there's one thing I look back on with great pleasure, it's the employees. Some have been with us since the 1980s and have a wealth of experience. They are skilled, specialized craftsmen who know everything about property inspections and pest control, and they have been crucial to Kiltin's growth."

A managed and controlled process

Today, Niels Jacobsen is 65 years old. Over the years, he has received a number of purchase requests, but he only really considered the idea of selling Kiltin when a good friend gave him some advice:

"My friend, who is also a lawyer, said to me: Things take time. You make the mistake of thinking that everything is just fine because suddenly you're at the age where you need to get out of the business. You're much better off with a managed and controlled process and you should consider putting something in place. The outcome will be much better when you reach the finish line."

"It changed my perception and my friend was right. A sales process takes time, and it was tough because I had to both run a growing business and prepare it for a future sale, but it ended well," says Niels Jacobsen.

Lucky that both lights were green

During the process of maturing Kiltin for sale, Niels Jacobsen received inquiries from several potential buyers, and in 2021 the right match was made.

It happened when Bo Risom Jensen, partner at inforevision and Head of Transaction Services, suggested Niels Jacobsen contact the Danish private equity firm Polaris. Polaris owns SSG, which is a market leader in the Nordic region in damage control, industrial and property services, and they wanted to expand their activities with a leg in - yes, exactly: Pest control.

"Bo already knew Polaris, and when he called them, a connection was immediately made. They wanted to hear more, and that's how the process started. The timing was perfect, and it was great luck that both lights were green at that exact moment."

An intensive sales process by the book

With thorough preparations, everything was in place for a smooth sales process: Niels Jacobsen, as owner-manager and seller, was clear about his preferences. The advisors - the law firm Lundgrens and inforevision - were ready. And Kiltin had a fully updated data room with all relevant documents and information about the company for the buyer to review.

Shortly after the first contact, Kiltin and SSG signed a Non Disclosure Agreement (NDA), and from there it went quickly, with the deal closing in early September 2021.

"It was an intensive process that went perfectly by the book, and I also told Bo that he should get a prize. It was very fortunate that he knew Polaris and by implication SSG. Kiltin now continues as a brand and as a company, and we have preserved the jobs," says Niels Jacobsen and adds: "I am generally a fan of inforevision. In the 21 years I've used them as auditors and advisors, there has been nothing to fault. It's been a pleasure working with them."

The right buyer and the right deal

And the pleasure is reciprocated at inforevision. Bo Risom Jensen and his team in Transaction Services have experienced a trusting and strong collaboration with both Niels Jacobsen and his other advisors.

"Selling a family business is a very big decision and it's important to find the right balance between money and passion, reason and emotion, past and future. Niels Jacobsen has succeeded. Both personally and professionally, he places great emphasis on decency and honesty, and he has always been clear in his communication about what he wanted for Kiltin and not least for his employees. This provided a solid foundation for finding the right buyer, conducting an efficient sales process and landing the right deal that all parties are happy with. It has been a really exciting journey to be part of," says Bo Risom Jensen, inforevision.

Free to go when the time is right

Niels Jacobsen is still the CEO of Kiltin A/S, and the date of his last working day has not been set, but he has a clear agreement with SSG for an open and honest dialog about his exit.

"I feel that SSG has great respect for Kiltin. We are allowed to do things our way, and the employees can see that the company will continue - even if SSG has big ambitions. I have big ambitions myself. But I don't want to interfere with SSG's plans and I want to be free to leave when the time comes to say goodbye. It may take a year or two, but I won't disappear 'overnight'," assures Niels Jacobsen and concludes:

"In many ways, it's been really exciting to be sold. I've got new, talented colleagues, which is super inspiring and can get me a little excited. But it will come to an end one day, so we'll see what happens."