Rather Unique? A case study of the development company Ullersbro AB

Abstract

Title. Rather unique? -A case study of the development company Ullersbro AB Authors. Jin Bergsten (1991.07.01) and Johanna Fröjd (1989.11.30) Supervisor. Rögnvaldur Saemundsson, Senior lecturer, Docent, Institute of innovation and entrepreneurship, School of Business, Economics and Law at the University of Gothenburg Issue of study. Funding is needed in order for companies to develop and grow. However, some companies might never appeal to traditional funding alternatives. There could be several reasons for not achieving funding such as matching problems, that the expected financial return is not attractive enough etc. In some cases, advanced competence and funding are needed in order for the company to develop. This master thesis will investigate an alternative source of funding. A moderate amount of studies has been investigating the Swedish investment market, thus even less studies have contributed to the knowledge regarding investments limited to a specific geographical area in Sweden. Purpose. The purpose of this master thesis is to investigate an undefined investment phenomenon. The master thesis will highlight the development company Ullersbro AB and how they operate. Thereby, gaining a greater understanding for local investment companies in Sweden and the environment where they act. Methodology. The master thesis started with an initial literature review introducing the authors to understand other investment phenomena. Due to that the case company considers themselves to be unique the authors decided to use an explorative research approach. Further, a qualitative single case study was conducted. The initial literature review enabled the authors to identify concepts connected to investors. The interview guide was constructed based on these concepts. The authors made themselves familiar with the concepts and thereafter collected the empirical data. The data was collected using semi-structured interviews with members of the case company and stakeholders. The empirical data from the interviews were then transcribed and categorized according to the four topics. Later the authors acknowledged a fifth concept, legitimacy. The empirical evidence was analyzed topic by topic in relation to the literature. During the analysis, the five topics were reduced to three main concepts; Governance structure, Group Development and Network. The analysis was later used as a foundation for the 3 discussion, allowing the authors to answer the research question and sub-question arriving at a conclusion. Conclusion. Ullersbro is a development company consisting of seven members. All members share the same goals and values, with a common urge to keep the local business environment within Lidköping and its surroundings alive. Their greatest assets are their seven individual brands, networks and competences stacked upon each other followed by its geographical anchoring. The group is built on friendship and trust where the joy of working together is central. Furthermore, Ullersbro rule under consensus and VETO, implying that all decisions are made autocratically. They do not have a predetermined exit plan and only invest in companies connected to their competence base. This due to that they prefer taking an active role engaging in board and operational work. They invest a moderate amount of money and gain control through a shareholder agreement. Their reputation within their network enables them to execute the financial strategy, using bank loans as their primary source of capital.