2024-02-16
Lars Rambe, CEO of Hoi Publishing, shares his story of the transition from corporate lawyer to author – a journey that gave him valuable insights into the publishing industry and led to the creation of Hoi, the first publicly listed publisher in the Nordic region. Hoi Publishing aims to expand its operations and reach a turnover of over SEK 200 million within five years, initially in the Nordic region and then globally. For 2024, the focus is on strengthening the synergies from its acquisitions, increasing turnover and generating profit.
1. What is Hoi Publishing, and can you briefly tell us about your operations and business model?
We are a fast-growing publishing group with operations in Sweden and Denmark. We are the market-leading so-called hybrid publisher with our very own business model. We focus on authors and their opportunities to succeed. We offer everything you would find at a large publisher, but where the accepted authors invest in their publications and in return get both a lot of say about their publications and a very large share of the profit. The business started in 2010 and has developed significantly over the years. Today, we have hundreds of authors and thousands of published books in our catalog.
2. Can you tell us about yourself and your background, and how your interest in writing led you here?
I have a background as a business lawyer and attorney where I started Sweden's first niche agency for the life science industry in 1999. Later, I took hold of my dream of becoming an author and wrote a detective story "Spåren på bryggan" which I published with great success on my own publisher. The book has been sold to seven countries and has sold more than 250,000 copies. I have since written several more suspense novels. What I learned about the publishing industry through professional self-publishing and several publications on established traditional publishers gave me the idea for Hoi which I founded together with Sölve Dahlgren.
3. It's not often you come across publicly traded companies operating in the book publishing industry. What advantages and disadvantages do you see in being so unique on the stock exchange?
We are the only independent publisher listed on a marketplace in Sweden. The big advantage is that the listing makes us an attractive buyer for other publishers because we can offer everything that a stock exchange listing entails. The disadvantage is of course that not many investors know about us or the industry we operate in today and that there are few natural reference points on the stock exchange. At the same time, most have a relationship with literature and books, so I am convinced that there are many who would find this to be both an exciting and fun investment when they see what we are developing.
4. You recently entered into an agreement to acquire the publishing house Ekström & Garay. Please tell us a little about the research you did and why you chose Ekström & Garay.
We decided on an aggressive acquisition strategy even before we headed towards the stock exchange in 2022. Excitingly, we have not yet had to actively seek out acquisition candidates, but all the acquisitions we have made so far have been on the initiative of the sellers, and so this time too. Melker Garay called me in December and asked if we were interested in buying the company. It was not difficult to say yes because this makes us the largest hybrid publisher in Sweden where we take significant market shares while broadening the author offering and the synergy effects are obvious. We will be able to learn from each other and thus become an even stronger company.
5. You have completed four acquisitions in the last two years. How have you worked during the acquisition process, and how do you intend to strategically continue to grow through acquisitions?
We have a small and close-knit management function with high legal and financial expertise that can evaluate the acquisition opportunities that are identified. We are now working on developing the onboarding process and the various common functions that the group will have and which will also be part of the offering to the publishers that are acquired. We believe that the publishing industry is in clear need of consolidation and we intend to make the most of it. One acquisition at a time.
6. How do you expect to grow in the coming years, based on your history combined with where you stand today?
The goal is to grow into a large and successful publishing house. First on a Nordic basis and then internationally. The goal is a publishing house with a turnover of over SEK 200 million within five years, with acquisitions becoming larger as we grow.
Finally, what is Hoi Publishing's main focus for 2024?
We will make the most of both the synergies and the new competencies we see in the combined business with the explicit goal of further growing revenue while also moving towards bottom-line profit. The focus will therefore be on the right offers to authors and the right organization to continue growing.
We thank Lars Rambe for the interview and look forward to following the company throughout the year!
Disclaimer:
This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic owns no shares in the company at the time of the interview.
