Pitch: Sweedish MedTech rollup with a programmatic M&A playbook – seeking to exploit public/private valuation arbitrage by acquiring businesses at 5-7x EBITDA. Considered to be early-stage DHR or TMO. Recently seen explosion in growth, margins, and M&A capabilities. Higher scale, improved geographical/product diversification, and increased sell-side coverage/liquidity are expected to drive re-valuation. Management owns 25% and continues buying in the open market.
Valuation: Trades at 6.5x 2022 EBITDA, with earnings expected to increase 3x for the current year vs 2021. Expected to re-valuate to 15-20x EBITDA.
Exp. gain: +120% to sek14/share over the next 12 months. Potential 10x bagger in a few years.
Full ADDV-B.ST write-up (free guest account required):