Entity Dossier
entity
The Compounders
Strategic Concepts & Mechanics
Identity & CultureCross-Pollination Without Centralization
Relationship LeveragePermanent Home Pitch to Entrepreneurs
Operating PrincipleIntervention Only at Deviation
Cornerstone MoveLet Sellers Keep Skin in the Game
Signature MoveGroup Managers as Mini-CEOs Chairing 15-20 Companies
Signature MoveWrite Down Receivables to Zero at 30 Days
Strategic PatternSpecialize Deeper Not Broader
Capital StrategyEight-Times-EBITA Ceiling as Deal Discipline
Signature MoveZero HR People for 6,000 Employees
Risk DoctrineFourteen Years Private to Build the Machine
Competitive AdvantageSmall and Mission-Critical Beats Large and Visible
Cornerstone MoveOne Sheet of Paper Into the CEO Chair
Cornerstone MoveFlee the Swedish Bidding War
Cornerstone MoveDental Company to Demolition Robot Empire
Capital StrategySelf-Funded Acquisitions, Zero Share Dilution
Signature MoveShortest Conference Calls in Sweden
Signature MoveNo CEO Job Without Running a Subsidiary First
Primary Evidence
"The company’s sales are at SEK 32.8bn ($3.28bn), with an EBITA margin of 14.5%. Since it was floated in October 2005, the company has delivered astonishing numbers: free cash flow per share has increased 14% CAGR, with a total shareholder return of 5,000% (22% CAGR)."
Source:The Compounders
"The company prioritizes quality, seeking to own businesses that are leaders in their sectors, and further enhances the competitive position of those businesses by helping them become even more niched in their markets."
Source:The Compounders
"The company has never exceeded a net debt to EBITDA of 2.5×, despite paying dividends of 25% of operating cash flow since IPO."
Source:The Compounders