Quick Pitch: Scandinavian small cap with 40% ROIC and 15% average IRR (7-22% IRR range)
12x NTM EV/EBITDA, growing revenue at 13% with >40% ROIC
Hey there,
Today, I’m sharing an investment pitch on a high-quality Scandinavian small-cap consultancy that has quietly compounded at impressive rates. While consulting firms aren’t my usual focus, this one stands out with its strong customer retention, expanding margins, and consistently high ROIC above 40%.
Over the past five years, it has grown revenue at a 13% CAGR, with most of that growth coming from existing customers—a sign of strong demand and customer satisfaction. Due to its asset-light nature, the business is highly cash-generative and benefits from long-term client relationships.
The opportunity here is compelling, but as consulting businesses are outside my core expertise, I haven’t invested myself. Still, I believe this is a high-quality company with an attractive risk-reward profile, and I want to share my research with you today.
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