B3 Consulting Group: Acquires Webstep's Swedish operations - ABG

SEK 100m run-rate sales contribution excl. sub-contractors
Potential to earn 8-9% EBIT margin
Acquired at ~4x EV/EBIT on potential earnings


Acquires Webstep AB at seemingly trough earnings

B3 has announced that it will acquire Webstep's Swedish subsidiary for an enterprise value of SEK 38m. In 2023, Webstep AB generated sales of SEK 142m but earned an EBIT margin of less than 1%, which is below its maintainable margin. Based on our understanding of Webstep's potential within B3's group structure, a sustainable EBIT margin of ~8-9% should be achievable. Such a margin was earned by Webstep AB in 2020, but we surmise that the cost base expanded to an excessive level in 2021-2022. Therefore, we assess that B3 has acquired Webstep AB at an EBIT multiple of ~4x based on potential earnings, which is below that of B3 Consulting Group's ~7x '25e EV/EBITA.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/b3-consulting-group/Equity-research/2024/5/b3-consulting-group---acquires-websteps-swedish-operations/