Swedencare: Feedback from ABGSC investor day - ABG

Confident message from CEO
Supply chain issues expected to be solved by end of 2021
M&A multiples are expanding, but still at low levels

Swedencare’s CEO Håkan Lagerberg presented at ABGSC’s investor day, and gave a confident message. The focus was on summarising the M&A raid since 2020, the current product portfolio and financial targets under review (and likely to be positively revised). We also discussed the current M&A multiple landscape, visibility amidst supply chain shortages, as well as growth rates for Vetio.

Regarding M&A multiples, Lagerberg stated that one of the reasons for increased M&A activity in 2021 in the US could be the potential increases in capital gains taxes from 2022. While this has arguably led to motivated sellers, there has been no shortage of motivated buyers either, pushing M&A multiples upwards. Going forward, management expects M&A multiples to be around 10x-12x, which is in the upper range of Swedencare’s history since 2020 of 8x-12x (excluding Vetio).

Länk till analysen i sin helhet: https://www.introduce.se/foretag/Swedencare/Equity-research/2021/9/swedencare---feedback-from-abgsc-investor-day/