Talenom: A winning growth model with inorganic support - Danske Bank

We have looked at the Finnish accounting service market and we continue to view Talenom’s business model as the winning one in this field. Talenom’s high appetite for M&A is justified by its ability to deliver consistent cost synergies within three years due to its in-house accounting software. Furthermore, the new TiliJaska freemium platform provides Talenom with a new pocket of organic growth.

Talenom trades at a 20% premium to Admicom on 2022E EV/EBIT but at a 37% discount to Fortnox. Valuation can be justified by still increasing scalability, a large addressable market with low penetration and new freemium offering with similarities to SaaS providers. Continuing bolt-on M&A could provide upside to our estimates, but we struggle to find meaningful upside currently We raise our 12M fair value range to EUR13-15 (from EUR12-14). With this report, we transfer coverage to Daniel Lepistö.

https://watermark.publication.danskebank.com/COMMR_177457.pdf?data=7LJnOG5pyfbYXtPKv45boQlkNtUQyBCad5B7banaRyPbyNLb0C4%2Btc1J6Q3VL1WF4to1nTV2Su8SFTJnHwEnmpvUf6jBH2IfQU0E1uQGFkvbIdOfJmyHfOXHUluy4SkEeJ%2FsTgEJmc1NGHblgUcWpPEnqqVFwcnIb8Ep6q08pABxda9bXMKojF1G