Riches in Niches
research report
Hello,
Today I want to highlight what I think is one of the most overlooked Swedish serial acquirers I’ve come across in a long time.
There are a few reasons it sits in this “overlooked” bucket. First is size: at roughly $27M in market cap, it’s simply too small to attract much attention. There’s barely any discussion of it on Twitter, and you won’t find polished Substack pieces written about it.
Second, the company has a messy history, marked by unusually high turnover at both the board and management level. That legacy still weighs on perception, even though the situation today looks fundamentally different.
On this point, what I don’t think the market has properly priced in yet is that the new board, management team, and the new largest shareholder are all a clear step up from what existed historically. While the acquisition track record is still short (only two deals so far), the new board has, so far, shown discipline by buying niche, adjacent businesses at dirt-cheap prices. At the same time, management seems well focused on supporting the entrepreneurs behind the acquired companies, which is translating into strong organic growth across the group.
The new largest owner matters here as well. I’ve been told by a fellow shareholder that he’s a successful private investor, heavily influenced by Buffett-style thinking, with a CAGR of ~25% over 15 years in Swedish stocks. I couldn’t independently verify that, but based on my email exchange with him, it doesn’t strike me as implausible. I also spoke with both the CEO and the Chairman to better understand everything related to their M&A approach—from acquisition criteria and addressable markets to potential synergies. And I think the inorganic strategy will not only continue, but potentially accelerate from here.
Another reason the company is overlooked is how misleading the surface-level business description can be. At first glance, it looks far more cyclical and undifferentiated than it actually is. Dig a bit deeper and the picture changes: the group operates in narrow niches, competes on expertise and service quality rather than price, and primarily serves businesses and high-end consumers. In my view, that makes the earnings base higher quality and less cyclical than most investors would assume at first glance.
Valuation is the final piece. On trailing numbers, the stock already looks cheap at around 11× LTM P/E. At least relative to what you typically see in Sweden’s serial acquirer space. But that doesn’t reflect what I expect to show up in FY 2026, as the most recent acquisition starts to flow through, bookings convert into revenue and earnings, and newly hired sales staff begin to contribute. On my numbers, the company is trading closer to 4.5-5× forward EBIT and roughly 6–7× forward P/E, depending on operating leverage.
And I think SEK 1 of earnings should translate into more than SEK 1 of free cash flow in an average year. Over the long term, I see revenue growing at least 5% annually (albeit not in a straight line), with earnings growing at least at the same pace. This is before factoring in the upside from continued M&A growth at 2.5–5× EV/EBIT(A) multiples.
So yes, this is me bombarding you with the setup to help you decide whether this very long research report is worth your time. For those who think it is, let’s dig in.