Working together more important than numbers

Samuli Leppänen has worked with commercial forestry for his whole life. Leppänen joined forces with Korpi Capital at the end of 2016, and Leppämäen yhteismetsä was born. The mission of Leppämäen yhteismetsä is to continue the strong performance of Leppänen and at the same time grow the firm’s operations with new, innovative solutions. The goal is to become the largest and most profitable private jointly owned forest in Finland.

Based in Pudasjärvi, Samuli Leppänen is a dyed-in-the-wool professional in the forestry sector – the 44-year-old is a third generation forestry official.

– Many of my relatives work in the forestry sector. Back in the day I persuaded my father to buy a forest property, so that I would be able to try my hand in forestry work. I have an education in the field and have always been very interested in forestry work. In that property I had the chance to figure out if the methods I used were the correct ones, Leppänen reminisces.

Leppänen bought his first own forest property before the financial crisis in the 2000s. After that, he bought forest under his own name for a decade. His goal was to be able to quit his day job when he was 50 years old, and live off of his forest holdings. The plan took a slightly different direction, when he bumped into his cousin and Korpi Capital founder Mikko Leppänen in the summer of 2016.

– This was the first time Mikko talked about doing this together. I was very cautious at first, as I had been carefully calculating the profitability of my forest investments. It takes time to get used to letting go of your own plans and methods. Diverting from my own path felt difficult, Leppänen admits.

Everything was discussed frankly and openly

The discussions continued, however, and the other founder of Korpi, Tatu Mäkimartti, also joined the talks. First they sat down and planned on the sauna bench of Mikko’s cottage, then in Leppänen’s caravan. Mäkimartti drove the over 700 km journey to check up on Leppänen’s calculations.

– Tatu wanted to make sure my calculations were correct. He calculated for multiple hours, but in the end stated that they were in fact correct. At that moment we shook hands and decided to establish Leppämäen yhteismetsä, Leppänen explains.

Despite the fact that Leppänen pondered for a long time, whether he would dare to give up his own path and start working with others, Mikko and Tatu were able to convince him with their competence.

– Right from the beginning I was impressed by the open and frank discussions I had with the team. This created an environment where I felt comfortable with asking and having doubts. The questions they posed were so direct that there was no other option than to answer just as as directly. I was fascinated by their style. Sometimes I would doubt whether they understood what I was explaining to them, but when they posed the next question, it often revealed to me that they were already one step ahead, Leppänen laughs.

Targets were reached much faster than planned

When the agreement to establish the jointly owned forest was signed and everything was ready, it was time to start working. The goal was to further grow the operations Leppänen had started.

– We set certain goals, which we wanted to achieve within the next 10 years. With the groundwork I had done, we were off to a good start. Mikko and Tatu provided know-how and courage – the kind that has not traditionally been seen on this field. We were able to invent models that many have not been able to come up with yet. All this completely redefined our growth gradient, Leppänen continued.

Leppämäen yhteismetsä has only been operating for a little over four years, but the goals set for the decade mark have already been reached.

– We have done extremely well, much better than we could ever have hoped for. Our successes naturally give us courage and certainty regarding our work. Even though those goals have already been met, we decided to develop our operations even further, Leppänen smiles.

Innovations and competence

The cooperation between Leppänen and Korpi is already an established practice. Leppänen is responsible for leading Leppämäen yhteismetsä and makes sure everything is done as agreed. At the same time he takes care of the funds and budget, constantly investing in new forest properties. Korpi, on the other hand, focuses on different financing arrangements.

– Korpi comes up with ideas and solutions to financing that I or the banks have not necessarily even heard of before. Financial institutions have sometimes been a little surprised and Korpi has told them that maybe things could also be done this way.

The Korpi team has a lot of innovativeness and competence regarding financing. Investigative work is done actively by Kaisa Hyry and the other members of the team, Leppänen commends.

– Last year, for instance, we made big acquisitions, which were a little difficult to finance. Alone I would have lacked the courage, but the team at Korpi encouraged me, and together we were able to solve the issue. In the end we were able to carry out an immensely important project and prove to the financial institutions that our calculations were correct, Leppänen recounts.

Korpi unites people

Apart from the team’s strong expertise, Leppänen also appreciates working with Korpi due to the passion with which the team approaches their work.

– It is wonderful to do this job, when I can see others around me have passion for theirs. Enthusiastic and capable people are always nice to work with. In the end, that is even more important than numbers. Running is measured with seconds, jumping with centimetres, and this with euros, but the most important thing is doing it all together, stresses Leppänen.

The expertise provided by Korpi is not limited to its employees. Leppänen has also acquainted himself with representatives of other portfolio companies and different entrepreneurs. Leppänen says it often feels like he is working not only with Korpi but this whole network of people.

– We share experiences with the other companies. It is continuous learning. Even though we operate in different sectors, we are still part of the same group. This, to me, is vital. I have made new friends through this network. The Korpi method of working unites people. We help and boost each other forward. When you get to know pleasant people and witness them succeed, you also feel better yourself, Leppänen concludes.